China is trying something different to survive trade war
Beijing has put domestic consumption and worker mobility at the centre of its policy agenda this year as it girds the economy against Donald Trump’s excessive tariffs and its equally dramatic response.
As China’s leadership heads into its first formal attempt to negotiate down potentially crippling tariffs on most of its exports to the United States, Beijing is girding the economy for the worst.
Effective interest rate cuts by the central bank this week are part of the response to the slowing factory activity already wrought by Donald Trump’s trade war. Monetary easing is also aimed at tackling older problems such as high youth unemployment, weak consumer spending and fallout from the property crash.
Jessica SierNorth Asia correspondentJessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com
