This podcast explores the future of the Chinese economy and its markets, particularly in light of possible US tariffs and China's domestic policies. Experts express concern that significantly higher US tariffs on Chinese products could pose an even greater threat than the 2018 trade war. Although China is working to diversify its export markets, the US may respond by imposing tariffs based on factory ownership instead of the origin of exports. When it comes to domestic policy, while there are high hopes for new stimulus measures, the panelists caution that major economic policy changes are unlikely anytime soon. They note that the performance of the Chinese stock market is largely influenced by speculation around these policies, and while the RMB may experience short-term downward pressure, the long-term outlook remains positive thanks to China's considerable foreign exchange reserves and continual productivity growth.
