No easy solutions for China

CHINA ADVISORY - Report 16 Jun 2025 by Andrew Collier

The two economic issues facing China are the US-China trade talks and economic stimulus. The first can be partly resolved through negotiations, although even tariffs of 10 percent would cause a drop in GDP. The agreement thus far appears to be an agreement to negotiate—not an actual contract. On the second issue, the stimulus, the government’s policies have been weak and relatively ineffective, with support going either to narrow areas of technology or to the stock market, rather than to the fundamental economy.

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