Aggregate Demand China
China has a high demand for foreign foodstuffs, even cosmetics and cars remain strong, distributors are planning to ramp up orders from overseas suppliers in the next 12 months. More than 30% of the consumers who responded to the survey are more keen to buy products from the overseas company in particular SUVs and new energy vehicles. China has a plan to cut import tariffs for cars and car parts on July 1, and it is aimed at easing the trade tensions between the USA. In December, China cut import taxes almost 200 consumers products including food, health supplements, and pharmaceutical goods, they decreased the tax from 17.3 %to 7.7%.
This graph shows the imports and exports between USA and China from 2000 until 2017, shows that China imports from the USA more than the export. The imports kept increasing over the years, but export increased but didn’t have much growth as imports. China had its highest percentage of imports in 2015 about 2.5%.
Aggregate demand will help in the short run because we can see the growth.
Aggregate Supply
One of China’s biggest furniture company Ben Yang that supplies furniture to America, got higher tariffs on his products from 10% to 25% tax on his products. It is not just this kind of products there are many products facing tariffs from USA it is all in the chart below.
Aggregate supply will also help in the short run because of the price changes it will see the growth of aggregate supply.
Published May 2019 – Ahmad Mohd Bin Daar
The People's Republic of China Economy 