Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that there is the risk that a confidence hit from US tariffs might bring to the surface other vulnerabilities; including signs that Chinese corporate debt excesses are becoming a problem. Key Quotes “It is far from clear that the Chinese government will have the fiscal and monetary tools to fully contain the economic and financial damage from the combined threats of US trade policy and tightening credit conditions.” “Many analysts believe that China will ease policy to bolster growth. However, its policymakers may think its corporate credit excesses can no longer be simply contained by halting or reversing its financial sector reform.” “For instance forcing state-own banks to keep afloat struggling debt-ladened companies may significantly reduce their capacity to finance productive dynamic enterprises, and do little more than moderate the slowdown in economic growth while damaging longer-term economic potential.” “We suspect China may not be willing or able to simply ease monetary and fiscal policy to underpin growth to the same extent as it did in 2016/17.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD retreats below 1.33 on crude oil recovery FX Street 5 years Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that there is the risk that a confidence hit from US tariffs might bring to the surface other vulnerabilities; including signs that Chinese corporate debt excesses are becoming a problem. Key Quotes "It is far from clear that the Chinese government will have the fiscal and monetary tools to fully contain the economic and financial damage from the combined threats of US trade policy and tightening credit conditions." "Many analysts believe that China will ease policy to bolster growth. However, its policymakers may think its corporate credit excesses can no longer… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.