China Seen Countering Trump Tariffs With Stimulus, Weaker Yuan

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.

The measures could limit the impact on growth to less than 1 percentage point on average each year over the course of Donald Trump’s four-year term, according to 15 of the 19 economists surveyed by Bloomberg News after the US election last week. Three predicted a 1 to 2 percentage point drop in gross domestic product, while one saw no significant impact at all.

“China will grow more slowly because of ...