A note from strategists at Bank of America Merrill Lynch

The note says that China may add services such as education, travel, intellectual property charges and transportation to its retaliation package if the US goes ahead with the additional $100 bn tariff on imports from China.

They also highlight that in 2016, the US exported $54.2 bn worth of services to China, while China's service exports to the US only stood at $16.1 bn - hinting that China has a bit of an upper hand on the matter.

The note also argues that China is unlikely to use its Treasuries holding as a tool in its counter-measures, as it may drastically change the nature of the conflict. That's a similar view held by CASS researcher Zhang Yuyan earlier here.

Besides, China has a more potent tool in their armoury that they can unleash if need be.