China’s options to support an economy threatened by the escalating trade war with the U.S. go beyond simple monetary easing.
With data released Monday showing that output in the second quarter slowed, and factory activity cooled more than expected, attention is now focused on how the government can mitigate the effects of the escalating trade war. But given that a high-profile campaign to cut debt is also well underway, an old-fashioned credit-fueled spending splurge is no longer a preferred option.
