Fact-Checking Trump’s Claims About the Chinese Economy
What Trump said
If you know, China has come down tremendously. Tremendously. China could have superseded us in two years as an economic power; at This particular point, they’re not even close.
This particular is usually exaggerated.
the idea’s true that will China’s growth is usually slowing. The economy expanded 6.5 percent inside the three months that will ended in September, the slowest pace in almost a decade. (Those are the official numbers, at least. Many economists believe Beijing’s statistics are implausibly smooth as well as do not square with outside estimates.)
yet even if China’s growth rate hadn’t slowed, the country was hardly about to eclipse the United States in two years. Last year, Chinese economic output totaled $12.2 trillion, according to the entire world Bank. The American economy’s output totaled $19.4 trillion. Assuming the two economies kept growing at last year’s rates, the idea could still take around a decade for China to surpass the United States.
What Trump said
China got rid of their “China ’25” because I found the idea very insulting. I said that will to them. I said, “China ’25” is usually very insulting, because “China ’25” means, in 2025, they’re going to take over, economically, the entire world. I said, “that will’s not happening.”
President Trump is usually presumably referring to Made in China 2025, a 2015 government plan for modernizing Chinese manufacturers through state support as well as intervention. The Trump administration has repeatedly held up the plan as evidence that will China unfairly privileges its own companies over foreign competitors inside the Chinese market. The administration says its tariffs against China are intended in part to compel Beijing to change these practices.
Perhaps in response to all the attention the plan has received, Chinese officials have lately stopped mentioning Made in China 2025 by name. News outlets have been ordered to keep the idea out of their stories.
yet there is usually no indication that will Chinese companies have halted or reversed their plans to upgrade their capabilities, or that will officials are any less interested in catching up in areas like microchips.
“Chinese companies are trying to reach the technological frontier, as well as they’re continuing to pursue these plans even if the government has stopped being vocal about Made in China 2025,” said Dan Wang, a tech analyst for the research firm Gavekal Dragonomics. “Firms as well as the government have already invested billions into plants producing semiconductors, robotics, aviation equipment as well as some other high-technology goods.”
Also, even if the plan’s goals are eventually met, the idea is usually debatable whether that will could mean China will have taken over, economically, the entire world. The plan includes semiofficial targets for how much Chinese manufacturers sell by 2025 … in China.
What Trump said
yet I have to say This particular: Billions of dollars will soon be pouring into our Treasury through taxes that will China is usually paying for us.
When the United States places tariffs on Chinese imports, China doesn’t pay them. American importers do. as well as they might pass along the extra costs to American consumers. (Tariffs can still hurt Chinese companies, of course, if the higher cost means Americans stop buying their products.)
Mr. Trump may be correct that will Washington will soon be raking in more money thanks to the tariffs. China’s exports to the United States have risen recently despite the fresh levies. yet that will may just be because American buyers as well as Chinese sellers want to move as much product as they can before the spiraling trade war leads to even higher tariffs.