

The Impact of Tariff Threats on China
Feb 20, 2025
Jenni Marsh, the Greater China Eco-Gov Team Leader at Bloomberg News, shares her insights on how U.S. tariff threats, including a recent 10% hike, could reshape China's economy and its global relations. Eric Lynch, Managing Director at Scharf Investments, discusses the Federal Reserve's cautious approach to monetary policy amidst inflation concerns and market dynamics. The conversation highlights the impact of AI advancements and offers investment strategies in navigating these economic uncertainties.
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China's Tariff Preparedness
- Beijing likely anticipated tariffs from the beginning of Trump's presidency.
- The surprise was the delay, and China is currently the only country with enacted tariffs.
Positive Sentiment in China
- Despite trade war tensions, China's sentiment is positive due to a recent AI breakthrough.
- This has boosted stock markets and spurred hopes for private sector growth.
China's Domestic Focus
- Xi Jinping aims to reduce China's reliance on exports.
- He promotes domestic champions like BYD, Xiaomi, and DeepSeek to boost internal demand.