China’s Policy Response to the China US Trade War: An Initial Assessment

Kerry Liu

Chinese Economy, 2020, vol. 53, issue 2, 158-176

Abstract: The China US trade war had been looming since January 2018, effectively started on 6 July 2018, calmed down since December 2018 until April 2019, has now entered a second stage after the US decided to increase previous tariffs of 10% levied in US $200 billion worth of Chinese goods to 25% on 10 May 2019. This study reviews the policy response from the Chinese authorities during January 2018–April 2019 by looking at the fiscal stimulus, monetary stimulus and other institutional reforms. Finally, this study concludes that the Chinese government has changed its policy focus from the traditional demand-side economics such as the 2008–09, 2012 and 2015–16 stimulus to supply-side economics such as the 2018–19 stimulus.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:mes:chinec:v:53:y:2020:i:2:p:158-176

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DOI: 10.1080/10971475.2019.1688003

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