Changing Course in a Storm: China’s Economy in the Trade War

Changing Course in a Storm: China’s Economy in the Trade War

China’s economy faces deflation and a property bust; nominal growth trails real gains. Beijing counters Trump-era tariffs with restraint: diversifying exports, targeted fiscal support, supply-side reforms and new tools—export controls and sanctions—to leverage industrial dominance. Exports cushion weakness as investment slows; high household savings persist. Leaders bet on techno-industrial upgrading and “anti-involution” campaigns to restore su…