Hong Kong (CNN Business)China is riding out the trade war so far but its economic troubles run deep and could escalate rapidly if US tariffs really start to bite.
Trade war? China has bigger problems
Beijing is already wrestling with other problems that the trade war could exacerbate. China’s economy is now growing at its slowest pace since the global financial crisis. It’s laden down with debt and facing concerns about a real estate bubble and weakening currency.
Despite the Trump administration’s new tariffs on $200 billion of Chinese goods, exports are still growing strongly, up 16% in October. But that could change in the coming months if tariffs rise to 25% from 10% at the end of December, as the US has threatened, adding to China’s growing list of problems.