China is implementing new measures to try to revive its stagnant economy as Donald Trump is expected to return to the White House in January.

Beijing wants to tackle the tens of billions of dollars of debt currently weighing on local governments to prevent it from slowing the country’s overall growth.

After President-elect Trump won the election American electioneconomists warn of potential disruption to the global economy.

Mr Trump has promised to introduce heavy import taxes that could result in tariffs of 60% on goods made in China.

That could pose a new challenge for China’s economy, already struggling with debt, unemployment, a housing market crisis and an aging population.

When Mr. Trump was president from 2017 to 2021, he imposed 25% tariffs on Chinese goods.

China analyst Bill Bishop believes Mr Trump will keep his promise to impose heavy taxes on Beijing.

He told the BBC: “I think we should believe that he means it when (he) talks about tariffs, that he considers that China has reneged on its trade agreement, that he thinks that China and Covid cost him the 2020 elections.”

The International Monetary Fund (IMF) projects that China’s economy will grow 4.8% in 2024. China’s target is 5%.

Next year, growth is expected to slow further to 4.5 percent.

Larry Hu, chief China economist at Macquarie, said on Wednesday: “Trade War 2.0 could end China’s current growth model, in which exports and manufacturing have been the main engine of growth. »

Tong Zhao, a senior fellow at the Carnegie Endowment for International Peace, told CNN: “Although Beijing is deeply concerned about the unpredictability of Trump’s China policy, it remembers that challenges also bring opportunities.

“Despite fears of a renewed trade war, Beijing believes Trump’s tough tariff policies would be deeply unpopular in Europe, creating an opening for China to strengthen economic ties with Europe and thwart efforts Americans aimed at intensifying technological and supply chain decoupling between China and Western countries. “.