The Chinese authorities have developed a set of measures that will stimulate the state economy if on May 10 the US increases duties on Chinese goods to 25%. This is reported by the South China Morning Post with reference to the words of analysts.

The list of these measures includes cutting taxes and fees, stimulating consumption, sales of cars and domestic equipment, reducing interest rates for credit growth. The authorities want to help small businesses because they are most exposed to the negative effects of the trade war.

Among the possible measures analysts also mention easing restrictions on the sale of housing in small towns and opening the economy to foreign investment. The analyst of Standard Chartered Bank Ding Shuang noted in the comment to the newspaper that when planning the economic policy for 2019, the Chinese government considered the scenario of no trade deal with the USA, and now the prepared retaliatory measures can be useful.

The US President Donald Trump said earlier that on May 10 Washington will increase duties on Chinese products totaling $200 billion. Duties will grow from 10% to 25%. He added that today Chinese goods for a total amount of $325 billion are duty-free, but soon the fees for them will account for 25%. The President emphasized that he is dissatisfied with such a slow pace of negotiations with China. He issued the above-mentioned statement to coincide with a new round of trade consultations to be held soon in Washington. This behavior of the US President expectedly caused a negative reaction from Beijing.

Donald Trump is trying to solve at least one “global issue” before the end of his presidential term to confirm the status of the United States as the main power in the international arena. Attempts to change the situation in Eastern Ukraine and force North and South Korea to sign a peace Treaty have obviously failed, and the transfer of the Golan Heights to Israel is a notable and important episode for the Middle East, but not for the whole world. Thus, the tightening of conditions for the Chinese market is an attempt to bargain preferences for American producers in the trade war with PRC and to stimulate the domestic market.

It seems that Trump expects to end the trade war before the next election on favorable terms for the US, however, the experience of such confrontations shows that the original plan is rarely observed, so it is highly likely that the next US President will have to solve the problems of Chinese-American trade relations.