U.S. election outcome could influence China’s stimulus package

• According to an article in South China Morning Post, the results of Tuesday’s U.S. presidential election may influence the size of China’s long awaited fiscal stimulus package. If Trump wins, it could lead to increased spending to counter the effects of any potential tariffs. Throughout his campaign, Trump threatened a 60% tariff on Chinese imports while Harris has not indicated any shift from the tech restrictions imposed by the Biden administration.

• The five-day meeting of China’s top legislative body, the National People’s Congress (NPC) Standing Committee, is scheduled to coincide closely with the U.S. election, underscoring the influence of external factors on China’s domestic policies.

• Exports continue to be a key driver for China which is still facing declining domestic demand, with the U.S. remaining one of the top destinations for Chinese goods.

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