China: Donald Trump’s tariffs are not China’s only problem

But the lackluster economic picture, uncertainty over tariffs and other geopolitical uncertainties means that the appetite of foreign businesses to invest in China has been subdued.

It’s not about foreign or domestic investment – it’s that businesses don’t see a bright future, says Stephanie Leung from wealth management platform StashAway.

“They want to see a more diverse set of investors.”

For all these reasons, experts believe measures to support the economy will only partially alleviate the potential impact of new US tariffs.

Beijing must take big, bold action or accept that the economy will not grow quickly, Goldman Sachs China Chief Economist Hui Shan wrote in a new report, adding: “We hope they choose the former.”

“China needs to stabilize the property market and create enough jobs to ensure social stability,” said Standard Chartered Bank’s Ding.

According to researchers China Dissent Monitor, there were more than 900 protests in China between June and September 2024 led by workers and property owners – 27% more than the same period a year earlier.

This type of social strain as a result of economic grievances and wealth erosion will be a concern for the Chinese Communist Party.

After all, explosive growth has turned China into a global power, and the promise of increased prosperity has largely helped its leaders keep a tight lid on dissent.