China’s Growth would Drop this much after New Tariffs

china imports
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China’s growth could drop 0.3 percentage points after the additional tariffs on US$200 billion of Chinese goods becomes effective, said Ma Jun, a Chinese central bank advisor, on Friday.

His comments were published by the central bank-run newspaper Finance News.

Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin started two days of talks late Thursday afternoon in Washington after Trump tweeted tariff threats on Sunday.

Ma said that China would impose corresponding countermeasures if the US goes ahead with the additional tariffs, adding that the drop of 0.3 percentage points is still within “a controllable range”.

He added that China’s economic performance has improved in recent months and the country’s current macroeconomic environment and policies should make the Chinese market resilient enough.

Commenting on the Chinese central bank, he said it has sufficient monetary policy tools to deal with both internal and external uncertainties.