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    China Has Announced On The 5th of March of This Year

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    aslambiental
    China has announced that its economic growth for 2019 will be between 6-6.5%, the lowest in 30 years. To boost the economy, China will cut taxes for businesses but experts are skeptical of the effectiveness given China's history of tightening tax collection at the same time. China's ongoing trade war with the US has negatively impacted economic growth through new tariffs on $250 billion of Chinese exports. Efforts to stimulate the economy risk worsening China's already high levels of debt.

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    China Has Announced On The 5th of March of This Year

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    aslambiental
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    China has announced that its economic growth for 2019 will be between 6-6.5%, the lowest in 30 years. To boost the economy, China will cut taxes for businesses but experts are skeptical of the effectiveness given China's history of tightening tax collection at the same time. China's ongoing trade war with the US has negatively impacted economic growth through new tariffs on $250 billion of Chinese exports. Efforts to stimulate the economy risk worsening China's already high levels of debt.

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    Academic analyses of some important news for International Business

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    China Has Announced on the 5th of March of This Year

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    China has announced that its economic growth for 2019 will be between 6-6.5%, the lowest in 30 years. To boost the economy, China will cut taxes for businesses but experts are skeptical of the effectiveness given China's history of tightening tax collection at the same time. China's ongoing trade war with the US has negatively impacted economic growth through new tariffs on $250 billion of Chinese exports. Efforts to stimulate the economy risk worsening China's already high levels of debt.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6 views1 page

    China Has Announced On The 5th of March of This Year

    Uploaded by

    aslambiental
    China has announced that its economic growth for 2019 will be between 6-6.5%, the lowest in 30 years. To boost the economy, China will cut taxes for businesses but experts are skeptical of the effectiveness given China's history of tightening tax collection at the same time. China's ongoing trade war with the US has negatively impacted economic growth through new tariffs on $250 billion of Chinese exports. Efforts to stimulate the economy risk worsening China's already high levels of debt.

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    of 1

    China cuts taxes as it warns of 'a hard struggle' ahead

    The news I have chosen took place in China, last 5th of March, it will
    affect specially China, but somehow it will affect the rest of the world,
    some countries in a broader way.
    It affects International Business because the news involves the
    strongest economies in a trade war that has affected the economic
    growth of the biggest exporter, manufacturer and provider of working
    force in the world
    China has announced on the 5th of March of this year that the
    predicted economic growth of 2019 would be between 6 and 6.5 %.
    That represents a decline from last years in 6.6 %, this means that
    the economic growth of this year will be the lowest one in the last 30
    years.
    To achieve this goal of 6 to 6.5 % growth, the government has spent
    more resources on infrastucture, and loosened their monetary
    policies, also promising further measures such a cutting the taxes
    applied to businesses. According to experts cutting the taxes hasn’t
    been as efficient in the past as government might think, because at
    the same time, they tightened the recollection of taxes. A question
    that pops up is, from which part of the budget is the government going
    to replace the cash flow of taxes?
    One of causes of the decreasing in economic growth is the ongoing
    trade war they have with the United States, which has resulted in new
    tariffs on about $250 billion of Chinese exports. The good news for
    Chinese enterprises is that recently, US president Donald Trump said
    few days ago that the two sides are "very, very close" to a deal and
    that he plans to meet Chinese leader Xi Jinping for a "signing summit."
    These recent efforts to lift the economy have also prompted concerns
    they could worsen China's high levels of debt, which is what
    happened in the government's previous stimulus binges. The total
    amount of debt in the Chinese financial system is now several times
    the size of the entire economy, according to the Bank of International
    Settlements.
    References
    Shane, D. (2019). China cuts taxes as it warns of 'a hard struggle'
    ahead. CNN business. Taken from
    https://edition.cnn.com/2019/03/04/business/china-economy-
    growth-2019/index.html
    By Daniel Lafaurie Soto

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