2016/11/10

Will Trump's Presidency Drive China's Economy “Crazy”?

Local time on November 9th, 2016, the American election results: Donald Trump was elected the 45th President of the United States.

Despite the U.S. ambassador Mr Baucus said to China on certainty yesterday: "no matter what President candidate in the election, will not affect China-US relations."

trump, election 2016,vote in election



But objectively, different leaders have different ruling idea and style, will certainly bring different effect to China.

trump, election 2016,vote in election

Here to tease out the Trump’s stage will bring 4 big influences to China’s economic.

1. High tariffs on Chinese goods, increasing downward pressure on China's economy


In the last campaign speech, Trump make much "fun" on China frequently. He said that if elected, would increase 45% levy taxes on imports of Chinese products. Under the condition of China's economic growth is slowing, it is bound to increase more pressure on China's economy.

2. Depreciation pressure increased of RMB


Trump attacked the Chinese government manipulation of the RMB, weakened the competitiveness of the company in the United States, the United States is suffering from a Chinese enterprise "massacre".

3. Abandon the TPP, it’s good for China


If the United States withdraw Trans-Pacific Partnership Agreement (TPP), China can avoid excluded by the trade agreements with the adverse economic impact.

trump, election 2016,vote in election,tpp

4. "Low-key and maintain respect’ to China


Although Trump against China frequently in public speaking, but foreign media has been claimed that trump is sent to the "sting" of China. He thinks that China is a strong competitor, so need powerful leaders in the United States. Trump’s government would "low-key and maintain respect" to China.

I think that Trump elected, the market will usher in a higher volatility, because of his win was unexpected, is bound to bring higher uncertainty for market.
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