Luo Zhiheng, chief economist at Yuekai Securities, said China should resort to effective countermeasures against any tariff threats by the White House, while optimizing domestic policies and anchoring market expectations.
“Based on the experiences gained during the first Trump administration, China can utilize measures such as imposing additional tariffs and export controls to counter trade threats from the U.S.,” Luo said.
He added that China should continue to broaden the list of sanctioned goods and entities, and increase Beijing’s negotiation leverage with Washington.
Given heightened global uncertainties, China should scale up the intensity of its fiscal and monetary policies, actively expand domestic demand to counter any potential downturns in external demand, and steadily push forward high-level opening-up, expand networks with trade partners and diversify its trade portfolios, Luo said.
SANGHA KOMMUNE (SSR) 