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Trump’s second term: China prepares for economic challenges

On January 20, Trump began his second term following a three-month transition period, a crucial time for China. While his well-known policies, including tariffs and conservative immigration measures, are expected to persist, China is focused on boosting domestic demand, stabilizing trade, and strengthening diplomatic ties. China has rolled out aggressive economic stimulus measures, such as currency devaluation and gold accumulation, to mitigate the effects of U.S. tariffs. Diplomatically, China is working to rebuild relationships with Japan and ASEAN nations to ease pressure from the U.S. In the Taiwan Strait, China has also ramped up its military presence. Despite these efforts, experts predict that China’s economy could face challenges, with a potential 0.3% reduction in GDP growth in 2025.

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