President-elect Donald Trump has threatened to impose a hefty 60% tariff on all Chinese goods entering the U. S. While this move might seem like a blow to China's economy, experts suggest it could actually benefit Beijing in the long run. Professor Chen Zhiwu from the University of Hong Kong believes that such tariffs could force China's leadership to refocus on its struggling economy. Since Trump's first term, China's economic growth has slowed from 7% to 4. 5%, and its property market is in a crash. Youth unemployment has also hit a record high.

Beijing has been heavily investing in its military to rival the U. S. , which has come at the cost of domestic economic growth. China's defense industries have seen significant growth, while consumer-oriented industries have stagnated. Trump's tariffs might push China to stimulate domestic consumption, which could help the country's economy in the long term.

However, China's economy is closely linked with the U. S. , making retaliation difficult. China imports vital goods like computer chips from the U. S. that it can't produce internally. Additionally, Trump's protectionist policies could drive some U. S. allies closer to China, mitigating the impact of the tariffs.

Trump's return to the White House could also influence Beijing's relationship with Taiwan. While it's unclear if Trump would defend Taiwan militarily, his presidency might give China some leverage. An invasion of Taiwan would have global economic repercussions. Both experts agree that a stable economy is crucial for China's geopolitical ambitions.

Trump's Tariff Threat: A Boon for China's Economy?

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