As former President Donald Trump is set to return to the White House, Reuters reported on Dec. 24 that China will issue a record 3 trillion yuan in government bonds next year in an effort to rescue its crisis-stricken economy and mitigate the impact of potential significant tariff hikes by Trump.
This marks the latest sign of China’s concern that bilateral relations may quickly plunge to a new low during Trump’s second term. For a long time, a basic assumption about U.S.-China relations has been that even when relations deteriorate, they won’t fall too far. Looking ahead to the new year, Trump is set to bring an unusually hard-line, hawkish team on China into the White House.
