Pre-empting stiff tariffs from Donald Trump, China plans massive $411 billion fiscal stimulus next year; here are all details
Chinese economy may not see eye-to-eye after January 20, as the President-elect could be implementing heavy tariffs on China products if hey are to make entry into US markets. This would mean that the magnanimous profits that China used to gain through its exports to the US may take a huge hit, and that could reflect on its already faltering economy.
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Will Trump tariffs affect the Chinese economy?
China is already planning on introducing 3 trillion yuan ($411 billion) worth of special treasury bonds next year, which clearly means that the economy of the country is not in a very good state., and could worsen over time if Trump decides to impose high tariffs on Chinese products.
This issue of special treasury bond is a record in itself and is part of the plan to revive the country's financial stimulus. When this news of the issue of treasury bonds broke out, China's 10-year and 30-year treasury yields rose 1 basis point and 2 bps, respectively, which is good for the overall aspect of its markets.
If Trump ultimately does not decide to introduce the high import tariffs on China after all, that could mean a bonanza for Beijing and it will then, with a little luck, achieve its financial targets for the year 2025.
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