Growth rate below 5 %

Jakub Porzycki | Radio | Getty Image

The imminent U.S. tariffs may have a major blow to China's economic economy, which has strengthened measures that require more powerful stimulus measures to strengthen the country's growth.

US President Donald Trump's threat caused by his President's victory on Saturday and levied 10 % of tariffs on Chinese goods. Since Tuesday, Beijing has not been able to prevent Fantnea from flowing into the United States in the United States

The 10 % tariff of the blanket will be levied the highest for existing tariffs on Chinese goods during the first presidential period.

Economists at Goldman Sachs said in a report on Monday that additional 10 % tariffs will reduce China's real GDP growth of 50 basis points this year.

Investment banks predict that due to weak demand, China's real GDP's real GDP growth rate will slow to 4.5 % this year, while domestic price growth is still under pressure. It is expected that consumer inflation rates in 2025 will rise only 0.4 %. Last year, the price inflation rate of consumers rarely rose, and 0.2 increased by 0.2 years %. With the weakening of external demand for Chinese goods, tariffs in the United States may further damage domestic prices.

After Trump began the second term, he ordered his government to investigate Beijing's first compliance with the trade agreement in the first trading agreement in 2020. The final result of the assessment will be delivered to Trump before April 1, which may lay basic economists for further tariff litigation.

Wang Tao, chief Chinese economist Wang Tao, told CNBC on Monday: "Obviously, there are still many in China, but there are still many in China. Uncertainty "

She said: "We did not modify our baseline in 2025 to predict that China's GDP will increase by 4.0 %."

Currency defense

According to LSEG data, China RMB fell 0.60 % to 7.3631 during the maritime transactions on Monday, and then before revising the loss. Since Trump won the Presidential victory in early November, the RMB has lost 3.7 %.

The market in mainland China has been closed for the New Year and will resume transactions on Wednesday.

The main tool for the People's Bank of China to manage currencies is the daily reference rate-allowing land for land to be traded within 2 % of this reference rate.

Trump's tariffs on China may be

Ding Shuang, chief economist in Greater China and North Asia, said that PBOC's spots on Wednesday will set the reference rate on Wednesday will be a key indicator of Beijing's response to tariff hike.

SHUANG added: "We expect that China will mainly rely on stimulation to increase domestic demand, rather than depreciating to offset the impact of tariffs."

Since last year, the Central Bank has limited the exchange rate guide to less than 7.20 per USD. This move is regarded as the determination to defend currency.

Goldman SACHS said that as the tariff rate rises, the central bank can "gradually drift higher" between the US dollar between 7.40 and 7.50, and the exchange rate against the US dollar is between 7.40 and 7.50. Before the policy is relaxed, the stability of FX is given priority.

According to Goldman Sachs, the central bank can "skip" other relaxed measures, such as cutting the cash amount that banks must hold, and trying to manage liquidity through an open market reverse repurchase operation.

Stimuli

Barclays said in a report on Monday that China can "effectively bypass" huge tariffs in Trump's first term, but "this time the impact of avoiding tariffs is not easy."

The bank said that the policy rooms of mobility exchange rate depreciation, large -scale trade transfer, and decrease in exporters' profit margins were "greatly reduced".

With the approaching of the external trade war, economists expect more fiscal expenditures to offset China's shrinkage pressure and increase consumer expenditure.

Although the economy has reached a 5.0 % growth target last year, it strives to get rid of the real estate collapse, the consumer and business confidence is weak, making exports the main driving force for growth. According to the World Bank data, even in 2023, exports account for 20 % of the country's GDP.

Domestic economic issues are greater than Chinese tariff uncertainty: strategic family

Waiting for the mountain bird

The Ministry of Commerce of China said on Sunday that this will challenge Trump's tariffs in the World Trade Organization, condemning the tariffs that swept the sweeping is "serious violations of international trade rules."

Oathing "takes corresponding countermeasures to protect its rights and interests firmly", but China declares no longer announce any specific tariff plan.

Licenses to the WTO to a large extent are Beijing's symbolic move to the European Union's tariffs on Chinese electric vehicles. In recent weeks, Chinese officials have reiterated that Beijing believes that there are no winners during the trade war.

LNG's chief economist Lynn Song said Beijing's response seemed to "start mild", but he warned that some Chinese decision makers may still be on vacation, so they postponed any specific revenge until they returned to work on February 5.

The song added: "If it is pushed to the corner, China's revenge may be stronger than most people expect." This shows that Beijing has a series of response tools, including strengthening export control or ban on rare earth, and targeting American corporate group groups. Measures are in the Chinese market with a large dependence.

Trump's execution orders include 25 % tariffs on Mexican products from China's main exports to re -arrange channels.

The song adds that this may promote China to transfer exports to ASEAN and Latin American countries, while promoting trade relations with these countries to help offset "more protective United States."