China: Donald Trump's tariffs are not China's only problem
Published On Jan 16, 2025, 6:19 PM
China is facing significant economic challenges ahead of the anticipated release of its GDP figures for 2024, amid a protracted property crisis, high local government debt, and rising youth unemployment. Experts are wary of President Xi Jinping's ability to meet the growth target of around 5%, citing low business and consumer confidence, the adverse effects of potential US tariffs on exports, and a struggling property market that is crushing household spending. With weak investment sentiment and political uncertainty, the outlook for China's economy remains bleak.
Stock Forecasts
FXI
Negative
Given the current economic challenges, including the risk of tariffs and subdued domestic consumption, the short-term outlook for Chinese stocks appears negative. Investors might turn to defensive sectors or consider assets that perform well during economic downturns.
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