US Tariffs will hit China’s GDP but China is stimulating its economy

UBS analyst expects the tariffs on $200 billion of Chinese exports to take 0.5 to 0.7% off of China’s GDP growth. China will use easing and infrastructure projects to add back 0.3 to 0.5% of GDP growth.

Eugene Qian, chairman of the UBS China Strategy Board, discussed the impact of the new tariff on China’s economy, how they will react to the new tariffs, opening up their markets and their China strategy.

The Financial sector grows at 1.5 to 2 times the GDP of a country.