Published February 11, 2025 | Version v1

Can Trump really destabilize the Chinese growth trajectory?

Authors/Creators

  • 1. Centre for Field Learning

Description

Immediately after Trump took over the charge of America, he imposed high tariffs on his major trade partners. This paper looks at the effect that the tariff war can have on China, the second largest economy in the world. The paper finds that China digested the first wave of tariff imposed by Trump in 2018 well and its exports to the USA increased to all time high by 2021-22. China did not decrease the prices, and in spite of the global slowing down of economies, China’s trade balance remains positive. Expecting disruptions from the USA, China has already started diversifying its export partners. Chinese exports cover a large range of variety, that also enables China to adjust its risks. Given these facts, the paper concludes that the tariff war will not affect the Chinese economy that much.    

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Dates

Copyrighted
2025-02-11