Iron ore price, page-16963

From a McKinsey and Co 2018 report:

More specifically, the Chinese government has already enabled local governments to issue close to $200 billion in bonds to support infrastructure construction, and it has the option to implement additional tax cuts (for instance, on automotive purchases) to stimulate consumption.

Well, with the US$290 billion in personal and other tax cuts already announced in China in March this year- this means that, despite the US tariffs- with tax cuts equivalent to a year's pay for the median household, the disposable income for Chinese families is rising.

The idea is to simply buffer any effect of the US trade war (expected impact negative: 0.5-1% of GDP- expected positive impact of this year's tax cut's: 1% of GDP).

The result? Effects like Chinese retail sales in June 2019, up 9.8% YoY on retail sales in June 2018. That was well above the 8.3% expected.

https://www.mckinsey.com/featured-insights/china/what-can-we-expect-in-china-in-2019

https://www.cnbc.com/2019/07/24/china-tax-cuts-may-offset-the-effects-of-trade-tariffs-economist.html