Below trend growth to continue
China looking inward as the external environment has deteriorated.
In recent months, US President Donald Trump has spoken about decoupling the United States and Chinese economies, suggesting that the US would not suffer if the two countries were to no longer trade together. Although many observers have noted that the two economies are so interconnected that such a strategy would be impractical, it appears that Chinese authorities are shifting their thinking to address an increasingly negative external environment. In part this reflects the fact that a potential change in the US administration may not result in a material change in policy towards China.
For further details, please see the China Economic Update – November 2020
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