Trade war may have less impact on china
Opportunities exist in EU, Southeast Asian nations
By: Ankika Blswas
and Bansari Mayur Kamdar
Reuters
..... With China at the forefront of U.S. President Donald Trump;s tariff agenda, domestic economists expect a combination of policy measures, supply chain adjustments and strengthened global partnerships to cushion the world's second-largest economy as the trade war intensifies.
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"We (China) have taken proactive step to mitigate the impact of the trade war," Zone Liang, chief economist. Research Institute at state-owned bank of china, told the Reuters Global Markets Forum.
..... "We've made it easier for other countries to do business with us, strengthening trade relationships beyond the U.S.," Zone said.
..... Minutes after Trump's 10% tariff on Chinese imports took effect on February 4, [2025] Beijing announced retaliatory tariffs on some U.S. energy products and autos along with a range of measures against Google and other U.S. firms.
..... Trump has also announced a 2% tariff on all steel and aluminum imports into the U.S., which was eventually followed by multiple countries including Vietnam, South Korea and India unveiling their own measures on Chinese steel and steel-related imports.
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"Despite this, (China's) share of global exports has remained strong," Zone said, adding that he expected China to adopt a more aggressive fiscal policy this year [2025] along with additional measures to stabilize domestic demand.
..... Alex Hongcai Xu, deputy director of the Economic Policy Committee at the China association for Policy Sciences, said Chinese companies are diversifying their export markets and broadening overseas investment cooperation, which will help mitigate trade war costs and risks.
..... In order to further safeguard itself, Xu expects china to provide finical subsidies and tax break to the tariff-hit agriculture and manufacturing sectors.
..... Both economics also noted that the U.S.-Sino trade ware opens up opportunities for China to deepen relationships with southeast Asian nations, the European Union and other tariff-hit countries, strengthening partnerships such as the Belt and road Initiative (BRI).