The Chinese government’s determination to support the economy and stock market was evident on April 8, the day after US President Donald Trump threatened to impose a further 50% in tariffs on China (to take the total to 104%) following the Chinese government’s announcement to tariff US imports into the country by 34%.
China’s muscular approach to US tariffs could stimulate the economy and accelerate efforts to support its stock market. This, in turn, would benefit exchange-traded funds (ETFs) listed on the Singapore Exchange (SGX:S68
) .
China could stay away from any US bond auction and threaten to dump US Treasuries. Secondly, to offset any slowdown caused by those punitive tariffs from the US, the Chinese government will “fully unleash” the country’s consumption potential to spur growth, Bloomberg reported Chinese President Xi Jinping as saying.
