The risks and opportunities for China's economy under the trade war

While these policies pose short-term pressures, China can leverage supply chain resilience, domestic demand, and strategic overseas expansion to mitigate risks. Trump's objectives include alleviating the US debt crisis and weakening China's supply chain position. However, China's "China plus one" strategy has fostered trade relationships with other regions, helping to blunt the impact. To counter trade barriers, Chinese firms should diversify markets and carefully assess overseas investments. China's vast domestic market and government support for consumption present growth opportunities. While high savings rates and other economic factors may hinder rapid consumption growth, the "dual circulation" strategy aims to boost the domestic market, potentially creating new opportunities amidst challenges.

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