China's chances of escaping the trade conflict with the U.S. with only minor damage to its economy just got slimmer.
U.S. President Donald Trump doubled down Friday on his threats to impose higher tariffs on the nation's goods, saying he's ready to tax all imports "at short notice." While economists see the immediate impact of trade tension as limited, the effect on economic confidence may be larger, warned former People's Bank of China Gov. Zhou Xiaochuan.
Trade data for August, released Saturday, echoed both the cause and effect of the standoff with the U.S. — the surplus with the U.S. rose to a record, while overall export growth slowed. A lone bright spot may be faster-than-expected import growth, signaling that domestic demand in the world's second-largest economy is holding up for now.