US President Donald Trump’s signing into law of the HK Human Rights and Democracy Act this week, after it received near-unanimous support in Congress, underlines the extent to which “standing up” to China has become a mainstream, bipartisan position in the US. This political rift between the US and China will make it hard to avoid further decoupling in the coming years. Meanwhile, in China, local governments have been given the green light to start making use of their 2020 bond issuance quotas as soon as possible. But as efforts to front-load issuance earlier this year show, this is no guarantee of faster infrastructure investment and doesn’t change our view that the bulk of fiscal easing this cycle has already taken place.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services