China may embrace greater stimulus, bolster manufacturing, and allow the yuan to weaken to offset the negative effects of a second Trump presidency on the Chinese economy, analysts said.

Lan Fo’an, China’s finance minister, said that local governments would be allowed to issue extra bonds worth trillions of yuan to replace riskier “hidden” debts. These hidden liabilities typically belong to local-government financing vehicles ( LGFV s),

Chinese stocks and the yuan slumped as fears of worsening Sino-American tensions further undermined investor confidence after a slew of disappointing economic developments.

Donald Trump is preparing to implement the most extensive tariffs in a century, and some of these tariffs are intended to serve as bargaining chips in trade negotiations, writes "The Washington Post." The newspaper adds that the introduction of a universal basic tariff is unlikely.

While campaigning, Trump threatened to impose heavier tariffs and pressure Beijing. The incoming president previously said he would increase tariffs on China as high as 60 to 100 percent, which would devastate the country’s economic growth and stress global supply chains.