Goldman Sachs Anticipates Domestic Factors to Drive China's Economy in 2025

Goldman Sachs analysts state that the Chinese economy is likely to become more domestically driven by 2025 following recent stimulus measures. They noted that demand in China could shift more towards manufacturing sectors, including construction, food, beverages, and electronics. Analysts indicated that if Chinese goods face higher US tariffs next year, this would emphasize the shift towards domestic demand. They projected that if Donald Trump wins the elections, an additional 20% tariff on Chinese goods would be implemented, which could burden China's real GDP by 0.7 percentage points. Analysts also emphasized that the ongoing subsidy program for the replacement of energy-inefficient vehicles, appliances, and business equipment is likely to be extended until 2025.