US Tariffs Could Threaten 16 Million Chinese Jobs: Goldman Sachs

Goldman Sachs has warned that up to 16 million Chinese export jobs could be at risk because of rising US tariffs. The manufacturing sector, especially industries like communication equipment, clothing, and chemicals, is likely to suffer the most. These industries rely heavily on selling goods to the United States.

According to S&P Global Ratings, some of China’s richest coastal provinces — including Guangdong, Jiangsu, Shandong, Zhejiang, and Shanghai — will be the hardest hit. These areas together account for about 40% of China’s total GDP, and a major slowdown there could make China’s existing local debt problems even worse.

Goldman Sachs also pointed out that Chinese companies might try to reroute exports through third countries to avoid the new tariffs. This tactic could help keep the overall export numbers stable, even if direct shipments to the US fall.

In the past, when China’s labor market faced stress, the country’s central bank usually cut interest rates to support the economy. Analysts believe that similar steps could be taken again if the job market comes under serious pressure.

Fitch Ratings: China’s Car Market Remains

Fitch Ratings has said that China’s domestic car market is expected to remain resilient even after the US imposes new tariffs. The agency believes that strong internal demand, government support, and rising interest in electric vehicles (EVs) will help the sector absorb potential economic shocks.

While Chinese car exports may face some pressure, Fitch noted that the large size of the domestic market, along with incentives for buyers and a push towards green technology, will provide stability. Overall, Fitch expects China’s auto industry to continue growing despite external challenges.

China Vows Fresh Economic Support as Tariff Tensions Rise, Rejects Trump’s Claim of Talks

China’s top leaders have promised new steps to boost the economy, protect jobs, support exports, and keep the yuan stable, as they work toward achieving the 5% growth goal despite global pressures like U.S. tariffs and market instability.

Meanwhile, China’s Foreign Ministry rejected former President Trump’s claim that Xi Jinping had called him, confirming that no new tariff negotiations are currently underway. This statement follows Trump’s remarks to Time magazine suggesting talks with China were progressing.