Trade war

China model seen challenged in “hostile” environment

The world's second-largest economy is set to continue growing at a faster pace than developed markets, but it must contend with bigger problems than before, say experts.

Leading China experts and investors remain bullish about the country's long-term growth story  at least outwardly. But there are more caveats than ever before because they see the Asian giant facing huge challenges in an increasingly hostile environment.

For one, experts argue that the relationship between China and the US is set to deteriorate further, regardless of whether American president Donald Trump remains in power and continues his protectionist policies.

“US-China frictions are certain to get worse,” believes Martin Wolf, chief economics commentator at the Financial Times. “That will be bi-partisan the Democrats are in different ways quite as protectionist and hostile to...

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