News Analysis
Another round of U.S. tariffs on Chinese products from the incoming Trump administration may not be Beijing’s most significant economic problem in 2025, as Chinese companies could circumvent them by reallocating production to low-cost Asian countries. Instead, China’s greatest challenge is a set of structural problems that include the “three D’s”—demographics, debt, and deflation—that threaten to push China into a prolonged stagnation, potentially resulting in lost decades like Japan faced in trying to cope with similar problems since the early 1990s.
