China may be holding back on economic stimulus ahead of the US presidential election, an economist wrote on Thursday.
This is because Beijing is keeping its powder dry in case Republican candidate Donald Trump wins in the November polls, wrote Rory Green, the chief China economist at GlobalData.TS Lombard.
Trump said in February he would slap tariffs of over 60% on China if he wins the election.
“The chance of a Trump victory and 60% tariffs on all Chinese exports to the US puts the onus on Beijing to hold back on stimulus in case it needs to drive growth in 2025,” Green wrote.
Trump’s proposed tariffs could hit China hard. Its economy is getting a boost from robust export sales because domestic demand is poor.
The Chinese economy has been struggling to recover following pandemic lockdowns as it confronts numerous issues, including an epic property crisis, high youth unemployment, and…
