Chinese markets fell on Friday amid disappointment with Beijing's disappointing economic stimulus package and worries that President-elect Donald Trump will reinstate high tariffs on Chinese exports.
Factories in China are reportedly ramping up production to get goods into the supply chain ahead of President Trump's inauguration.
Chinese investors are Looking forward to it Trump's victory in the U.S. presidential election on Tuesday prompted the government to roll out a massive economic stimulus package, but Friday's gains focused primarily on reducing the huge debts of China's local governments. only a relatively weak five-year plan of $1.4 trillion.
“This is not the stimulus that the market was looking for at all. This is not stimulus at all. What they are doing is recycling debt. I don't think this is going to drive growth,” said the US-based China. Shehzad Qazi, managing director of Beige Book, told CNBC.
He Yongqian, spokesperson for China's Ministry of Commerce (Mofcom), said: extended Offering an olive branch to the Trump administration, which will be sworn in on Thursday.
“China is willing to strengthen communication, expand cooperation and resolve disputes with the United States in accordance with the principles of mutual respect, peaceful coexistence and win-win cooperation,” he said.
He said the Chinese government hopes to “jointly promote the development of China-US economic and trade relations in a stable, healthy and sustainable direction that will benefit both countries and the world.”
Mofcom has made friendly overtures to avoid a new trade war with President Trump, while at the same time opening up the European Union for “intensive” negotiations over EU tariffs on Chinese electric vehicles (EVs). ) Preparations were underway to meet with officials.
Voice of America News (VOA) reported On Thursday, overseas shipments from China “increased at the fastest pace in more than two years in October as factories rushed to stock up on major export markets in anticipation of additional tariffs from the United States and European Union.” “I did,” he announced.
“President Trump's tariff threats have rattled Chinese factory owners and officials, putting about $500 billion worth of annual shipments at risk, while the European Union, which took away $466 billion worth of Chinese goods last year. “Trade tensions with China are intensifying,” VOA said.
Economists spoke of China's “frontloading” of exports to the final quarter of 2024, which could begin as early as the third quarter of 2025 to counter the expected blowout of Trump's tariffs.
Other major exporters such as South Korea, Taiwan and Germany have reported weak global demand even as China has ramped up production and lowered prices. VOA cited factory surveys in October that suggested China was struggling to find buyers for all the goods it was exporting, even at reduced prices.
