According to Chinese policymakers, the economic outlook is positive, despite the trade war ignited by President Donald Trump, and China’s growth target has been kept at 5 percent. However, to reach that level in 2024, China needed a massive $1 trillion trade surplus. Chinese trade is now threatened by a more protectionist external environment. Laxer fiscal policies have seen the official deficit eased from 3 percent to 4 percent of GDP, the largest on record, and a less strict monetary policy. However, no stimulus has been announced – a rather conservative response to the external environment. […]