China is currently engaging in moves to improve its economy in order to avoid further economic damage caused by Trump’s trade wars.
Beijing officials are now allowing more lending. Officials are also permitting local governments to spend money on larger projects. China hopes to increase the yuan’s value and avoid a stock market collapse.
These efforts may or may not be able to match the additions which the U.S. is making to its tariff package.
On Thursday, the U.S. officially added extra tariffs on $16 billion worth of Chinese products. Officials from Beijing stated that it intends to retaliate with its own tariffs and file a formal complaint to the World Trade Organization.
China is facing multiple problems at once. The nation needs to find the perfect balance between improving its economy and keeping its debt from increasing. At the same time, China will soon face the consequences of the U.S.’ tariffs.
Luckily, U.S. tariffs have not truly affected the Chinese economy. Trump’s trade wars are certainly not helping China recover from its economic issues. However, the nation still has some time to strategize.
However, handling both of these objectives at once could be dangerous.
Some experts have stated that China usually moves between maintaining stability to achieving economic growth. The nation is probably opting for the former tactic.
Negotiations between the U.S. and China have just started, however. While talks between the two nations are unlikely to reach a definite conclusion, they could open the floor for further progress.
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