The long-term outlook for China is bleak. I’ve discussed it plenty. However, the Chinese are getting a little lovin’ from an unexpected source.
At China’s National Congress, Xi got to hear all his biggest fans clap in unison and then listen to him spout off about his unrealistic 5% GDP growth target. And as a reminder to just how unrealistic this is, go ahead and look through China’s demographics, housing crisis, and overall economic stagnation.
Despite all those factors working against Xi, he’s getting some lovin’ from the place he least expected it. With Trump’s tariffs on Canada and Mexico, the mass exodus of manufacturing from China has slowed. This won’t save the Chinese, but the Trump administration just put a couple more quarters in their parking meter.