China's Economic Pivot: Tackling Tariffs and Market Stability

China's leaders are preparing for economic shocks from potential US tariffs and other market challenges. They are implementing strategies like consumer subsidies for energy-efficient vehicles and appliances, and curbing local government power abuses. Additionally, measures are being taken to stabilize the yuan and boost economic confidence despite internal challenges.


Devdiscourse News Desk | Bangkok | Updated: 08-01-2025 16:43 IST | Created: 08-01-2025 16:01 IST
China's Economic Pivot: Tackling Tariffs and Market Stability
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China is gearing up to weather economic shifts, particularly with the looming threat of elevated tariffs from the incoming US administration led by President-elect Donald Trump.

In response, the Communist Party has introduced consumer-focused initiatives, offering subsidies to promote purchases of eco-friendly vehicles and appliances, and modernizing factory machinery.

Additionally, there is a crackdown on local government overreach to create a more business-friendly climate. Financial strategies include issuing long-term treasury bonds to bolster spending, while maintaining yuan stability and market equilibrium amid fluctuating exchange rates.

(With inputs from agencies.)

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