The vitriol dominating public discourse in the run-up to US presidential elections may be aggravating divisions among Americans, and is also wearing down a key advantage the country has over Chinese leader Xi Jinping: soft power. Generations of young Chinese grew up admiring Disney films and iPhones but the affinity is now fading, according to our interviews with dozens of people in Shanghai, arguably China’s most internationalized city. More worryingly, respondents don’t see things improving no matter who wins, with Kamala Harris also vowing to be tough on China.
Uncertainty over the US election means the economic outlook for China also remains in the balance. Donald Trump is threatening to impose 60% tariffs on Chinese products — a move which could wipe out any boost from Xi’s stimulus blitz. In the latest sign of improvement, the Caixin manufacturing purchasing managers index rose in October from the previous month. Xi appeared to highlighted risks ahead in his latest speech, saying “unexpected factors are rising.” Economists at Goldman Sachs said in a report that higher US tariffs, if realized, could force Beijing to step up fiscal support for domestic demand.
