April 23rd, 2018 | By Elias Glenn and Stella Qiu—
China’s efforts to reduce its reliance on debt and find a more sustainable route to grow its economy may be derailed by the simmering trade dispute with the United States, economists warn.
This was the year that Beijing was expected to step up its controls on unfettered lending, particularly in the so-called shadow banking area, as it seeks to contain a dangerous build up in debt across much of the economy.
But there have been signs in the past few weeks that as U.S. President Donald Trump has ratcheted up the pressure on China over its trade policy – including a series of threats to impose punitive tariffs on Chinese goods coming into the United States – that a backsliding on deleveraging may be close.
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