Experts interviewed by the media are of the opinion that factory activity in China was probably on an upward trajectory in the current month, generating hopes and reasons to be optimistic about the prospects of the future for local officials, who are making efforts to stabilize the situation in the economic system of this Asian country being the second largest in the world.
Beijing is also currently preparing for the possible sensitive effects of increased tariffs on goods imported into the United States. Donald Trump, who won the United States presidential election in November and will return to the White House in January, has repeatedly pledged the mentioned intentions. For the Chinese economy, the main driving force of which is now exports, the growth of tariffs will be a painful circumstance.
More than 25 experts interviewed by the media expect that the December official purchasing managers’ index (PMI) will be fixed at 50.3. This indicator means that there are no changes compared to the November reading. It is also worth noting that the expected index is above the 50-point level, which separates growth from contraction.
The Chinese authorities expect that the policy support measures that were imposed in the second half of the current year will strengthen the local real estate market, which is experiencing significant difficulties and is on a downward trajectory, and stimulate domestic demand, which has recently shown sluggishness and is a kind of weak spot in the world’s second-largest economy.
Beijing also suggests that the mentioned measures can benefit local manufacturers in the face of a slowing global economy, reducing their vulnerability to the threat of rising tariffs from Washington.
Donald Trump plans to impose 10% tariffs on Chinese goods. At the level of official rhetoric, he stated that the relevant measure of Washington’s trade policy is aimed at compelling Beijing to stop the trafficking of chemicals used in the production of fentanyl.
The Chinese authorities, to support economic growth, also pledged to increase the budget deficit, issue more debt, and loosen monetary policy.
