The depreciation of the yuan and the strength of domestic spending could dampen the effect of the trade war in the Chinese economy

Trade tension increased again after the United States released a new tariff schedule of 10% worth $ 200 billion last night for imports from the United States. China, mainly affecting the Asian giant's manufacturing manufacturing sector (textiles, appliances, auto parts, among others).

As the Banchile Investment Studies Department pointed out, some of the payroll products are part of the "Made in China 2025" strategic plan sectors, a program proposed by Beijing that would make the country the leader in key industries globally. According to several badysts, some factors may mitigate this new threat to the Chinese economy, such as the depreciation of the yuan and the increase in domestic spending which in recent years have been the main driver of growth in China. activity by significantly increasing its importance with regard to exports. Indeed, in the first quarter, domestic consumption accounted for 78% of the expansion of its product.

Overall, "although these rates will not come into effect immediately as they will be subject to a review process, with hearings that will take place by the end of the month of April. August, the announcement already worries the market, reflected in the stock market performance. the morning of this Wednesday, commented the institution.