China seen countering Trump tariffs with stimulus, weaker yuan

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China seen countering Trump tariffs with stimulus, weaker yuan - Business Mirror

Quick Summary:

China may embrace greater stimulus, bolster manufacturing, and allow the yuan to weaken to offset the negative effects of a second Trump presidency on the Chinese economy, analysts said.

Factories and farms across America’s Midwest and South are at the heart of Trump’s political support, and their output was often targeted by China in retaliation to tariffs during his first term.

Chinese manufacturers are likely to increase investment in overseas production bases to avoid US levies and buffer themselves against trade shocks, some of the economists said.