China says it's not afraid of a trade war with the US — its actions show otherwise

Posted In: News Date:Oct 8th, 2018

The decision by China's central bank to cut the amount of reserves held by banks is an indication that authorities in the world's second-largest economy are getting nervous about a long-drawn trade war with the U.S., experts said.

China insisted last month, in a 71-page paper, that its economy is "highly resilient" and Beijing is not afraid of a trade war.

At the World Economic Forum in Tianjin, China in September, an official from the country's securities regulator said there was nothing President Donald Trump's administration could do to make a significant dent in the Chinese economy. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that the worst that could happen is the U.S. imposing levies on all Chinese imports, but that would only hit 0.7 percentage points of China's growth.


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