BEIJING, April 26 Reuters China on Friday passed a law leaving its biggest trade partners in no doubt that it can hit back should they put tariffs on the exports of the world39;s No.2 economy as Washington and Brussels take aim at Beijing over excess industrial capacity.

The Tariff Law, which was approved by China39;s top legislature after three rounds of deliberations going back to 2022, is the latest addition to Beijing39;s arsenal of trade defence instruments as it maintains an uneasy truce with the U.S. following a trade war that kicked off during the Trump administration.

The law, which will take effect from Dec. 1, outlines a range of legal provisions related to tariffs on Chinese imports and exports, from what constitutes tax incentives to China39;s right to hit back at countries that renege on trade agreements.

Beijing has stepped up its trade defence capabilities since President Xi Jinping came to power in 2012, ushering in laws empowering officials with ways of retaliating against countries that take issue with the way China trades by interfering with the movement of goods, data and personnel between those markets.

Rising tensions between China and the United States and European Union have only validated Beijing39;s belief it needs to consolidate and improve the measures it has at its disposal, analysts say.

It39;s like a nuclear weapon the point of having it is not to use it, but to deter others from using the same against you, said Henry Gao, professor…