China's economy faces renewed uncertainty as the yuan depreciates to a 16-month low, largely influenced by impending tariffs from the Trump administration and market volatility.
In early 2025, the CSI 300 index dropped over 4%, reflecting investor unease amid forecasts of a challenging year for China's GDP growth caused by potential trade tensions.
Many analysts stress that Beijing has yet to utilize its full economic stimulation strategies and is holding back responses until assessing Trump's early trade moves.
Predictions for a 'Trade War 2.0' loom as Trump, upon entering office, threatens new tariffs on Chinese goods, reviving concerns over a strained economic landscape.
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