Expert: US tariffs against China have little short-term impact
Caixin |
Updated: 2018-07-10 13:48
Sheng Songcheng, former head of statistics at the People’s Bank of China said in an article to Caixin that US tariffs against China will have little short-term impact though the numbers appear staggering.
According to estimates by the Chinese Academy of Social Sciences, US tariffs so far are expected to reduce the growth rate of China’s exports by only 0.75 percentage points, and their negative impact on China’s gross domestic product growth is expected by analysts to be between 0.05 and 0.25 percentage points. The impact on prices in China will also be minimal, he said.
This is because China’s economic growth is less dependent on international trade than it is on domestic demand. In the first quarter of this year, actual final consumption within China contributed 5.3 percentage points to the country’s gross domestic product growth — or 77.8% of growth — compared with exports, which actually dragged down growth by 0.6 percentage points, he added.
Sheng Songcheng, former head of statistics at the People’s Bank of China said in an article to Caixin that US tariffs against China will have little short-term impact though the numbers appear staggering.
According to estimates by the Chinese Academy of Social Sciences, US tariffs so far are expected to reduce the growth rate of China’s exports by only 0.75 percentage points, and their negative impact on China’s gross domestic product growth is expected by analysts to be between 0.05 and 0.25 percentage points. The impact on prices in China will also be minimal, he said.
This is because China’s economic growth is less dependent on international trade than it is on domestic demand. In the first quarter of this year, actual final consumption within China contributed 5.3 percentage points to the country’s gross domestic product growth — or 77.8% of growth — compared with exports, which actually dragged down growth by 0.6 percentage points, he added.
