Is Beijing concerned about a full-US-China trade war?
China’s economic axis towards domestic consumption was mentioned in the 14th Five Year Plan (2021-2025). The focus is also expected to continue the focus even while expanding the upcoming 15th Five Year Plan into AI.
In particular, economists hope that American tariffs will have limited impact on China’s global trade conditions and economy. Beijing’s measured response to the US tariff suggested the desire to go head-to-head with the US in a long trade battle. Foreign Minister of China Said If the US insists on teasing a business or tariff war, China will see it till the end.
Expert views on tariffs, Beijing’s economic goals and policy pledge
Natics Asia Pacific Chief Economist Alicia Garcia Herroo Questioned Viability of China’s 2025 development target:
“The target is very ambitious. This is a ‘non-conduct’ without a large stimulation, especially in the light of increased tariffs. ,
Meanwhile, Lee Dokui, advisor to People’s Bank of China, dismisses tariff concerns and said:
“I strongly believe around this time, tariff is no longer a big issue. If you order me three top issues in China or challenges in China, I do not even put the top three tariffs from President Trump. […] The way of dealing with tariffs is similar to dealing with other issues in the Chinese economy. This is to promote domestic consumption. And on this issue, there is already tremendous discussion, and a lot of policies will also be implemented below the road. ,
Market reaction: Seng index and mainland market advance hang
Despite the business stress, investors appear optimistic about Beijing’s policy measures. The Hang Seng index has increased by 5% this week, while the CSI 300 of the mainland and the Shanghai Composite Index are 1.40% and 1.46% respectively.
In contrast, the Nasdaq Composite Index is 1.56%below, with DOW and S&P 500 falling 1.90%and 1.88%respectively.
While Beijing sets an ambitious 2025 development target, the possibility of American recession is increasing, potentially limiting Trump’s options to target trade terms. 2025 US recession likely to be Between increasing trade stress, it has increased by 41%since November.
