“Markets React As Trump Raises Tariffs on China. Beijing eyes policy shifts – retaliation or Economic stimulus?”, – WRITE: www.fxempire.com
“I Strongly Believ This Time AROUND, TARIFF IS NO Longer a Big Issue. If You Give Me The Order of Three Top Issues in China or Challenges in China, and Don’t Even Put Top Three The Tariff from President Trump. In Fact, The Whole Economy Was Preparing for 40% and Even 60% of Tariff Hike from President Trump. Now HE’S ONLY PROPOSING 10%, OF COURSE, THERE Are Indirect Tariffs Upon Chinese Products from Mexico, From Canada, From Europe. But, Overall, It’s Still Smaller than People Anticipated. I Smaller than the year of 2018. SO, this time around, the Chinese Economy is fully fully prepared. I do not Think The Tariff Is A Big Issue. ”
Daokui Emphasized that China’s Strategy is to stimulate domestic consumption:
“The Way to Deal with Tariffs is the Same as Dealing with Other Issues in Chinese Economy. That is to boost domestic consumption. And this isssue, there’s already tremendous tremendos discussions, and also a Lot of Policies Will be Implemented Down The Road. ”
National People’s Congress Opens Amid Trade Uncertainty China’s Third Session of the 14th National People’s Congress Begins on Tuesday, March 4. Economists Expect Beijing to Roll Out Policy Measures, Targeting DOMESTIC DEMANDSING IDVANCE Economy.
In December, People’s Bank of China Governor Pan Gongheng Reinforced This Shift, Stating:
“The Priority of Macroeconomic Policy Should Shift from Promoting More Investment in the Past to Promoting Both Consumption and Investment, With More Importance Athaned To Consumption.
Economic Growth and Policy Priorities In Late 2024, S&P Global Forecast that A 10% Tariff on Chinese Goods Could Slow China’s GDP Growth To 4.1% In 2025, with Higher Tariffs Posing An Even Greater Risk.
On February 10, Beijing ReaffirMed ITS Commitment to Economic Growth, Outling Plans:
- Increase Residents’ Income and Promote Reasonable Wage Growth.
- Better Fulfill Housing and Consumer Spending Needs.
- Place Greater Emphasis on Boosting Consumption.
At this weeke’s second session of the 14th NPC, Lawmakers Are Expectioned to Discusses Economic Reforms, Fiscal Policies, and The Five-Yoar Plan. The GDP Target Will Likely Reflect China’s Strategy for Managing US Trade Pressures.
Market Reaction: Hang Seng Index Slides Hong Kong Stocks Fell Sharply Following the Tariff News, with The Hang Seng Index Falling 1.34%. However, Mainland China’s Equity Markets Showed A More Muted Respons. The CSI 300 and Shanghai Composite Index Slipped by 0.48% and 0.29%, Respectively.