China’s tax cuts may be able to offset the cost of trade tariffs, economist says
Tax cuts could end up supporting economic growth in China, even if Beijing’s trade war with the U.S. doesn’t improve, according to the chief economist of a Chinese investment banking firm.
The U.S. and China have been locked in a tariff battle since early 2018 and both economies have levied sanctions on each other’s imports. Earlier this month, China said its second-quarter GDP growth was 6.2%, its slowest quarterly rate in 27 years. Still, Liang Hong, chief economist of widely followed China International Capital Corporation said the government has done “enough” to support the economy.