Summary
China pledges to issue more debt and implement rate cuts to sustain economic growth as the threat of U.S. tariffs looms.
The Chinese government plans a more dovish monetary policy and an increased budget deficit.
Trump's return to the White House is expected to increase trade tensions, further impacting Chinese exports.
In an effort to stabilize its economy amidst escalating trade tensions, China has pledged to increase debt issuance and implement rate cuts in 2025. The announcement comes as former U.S. President Donald Trump’s return to the White House raises the possibility of new tariffs on Chinese goods, putting additional pressure on the world's second-largest economy.