Economics
China's Aversion to Big Bang Stimulus Tested by Trump Tariffs
- Economists downgrading China forecasts for 4Q 2018 and 1Q 2019
- Tax cuts seen as likely route to mitigating economic fallout
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China’s attempt to break free from the debt-financed stimulus of the past is being stress tested by Donald Trump.
As the White House threatens tariffs on everything the U.S. imports from China, policy makers in Beijing are cushioning the economic blow with tax cuts, regulatory relief and investment incentives, rather than the kind of spending and monetary binge seen in 2008 and 2015.