U.S. companies are increasingly concerned a hardline approach could stunt their prospects in the world's second largest economy – and turn them into targets of Chinese retaliation. China's retaliation tactics could range from economic changes to matters of diplomacy and security,

Tariffs will affect the exchange rate, it will affect China's capital flow, and also will affect how much China will buy US Treasury bills, said Zhu

With his nomination of China hardliner Marco Rubio for secretary of state, U.S. President-elect Donald Trump has signaled his policy toward Beijing could go beyond tariffs and trade to a more hawkish stance on China as the United States' main strategic rival.