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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsChina has a $3.65 trillion war chest to counter US tariffs
Beijings main defense against trade-war fallout this year is more likely to come from the finance ministry than the central bank, no matter what President Donald Trump says.
If tariffs begin to really hurt Chinas growth this year, theres plenty of direct fiscal firepower left to stoke the economy before the Peoples Bank of China would have to cut interest rates, according to an analysis of government spending by Bloomberg. Data released Wednesday showed an across-the-board slowdown in April.
Central and local authorities in China have at least 25.1 trillion yuan ($3.65 trillion) unspent in their budgets this year, data compiled using official budget plans show. Thats two trillion yuan more than the ammunition China had in the same period last year -- and about equivalent to the entire annual output of Germany.
Chinese leaders will be able to better utilize different kinds of policy tools than their U.S. counterparts if the trade war persists, and thats where Chinas confidence comes from, said Serena Zhou, an economist at Mizuho Securities Asia Ltd in Hong Kong. From monetary policy and fiscal policy to the dominant role of the state-owned enterprises, Chinas control on the economy is obviously stronger than the U.S., she said.
https://www.msn.com/en-us/money/news/china-has-a-dollar365-trillion-war-chest-to-counter-us-tariffs/ar-AABr2O9?li=BBnb7Kz
Wellstone ruled
(34,661 posts)all the cash on hand in China.
Our Niece's Son teaches in China,and the feed back is interesting to say the least. Those who follow American politics are calling Trump and his ilk amazingly ignorant as to how China operates.
soryang
(3,299 posts)It's a cottage industry among the financial set and their media mouthpieces. Gordon Chang the darling of the far right is supposedly an expert on China. He wrote the coming collapse of China in 2001. What a clown. Don't hold your breath.
roamer65
(36,748 posts)A dollar crisis will wipe it out.