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.