Afp Business Asia

Five underwater drones found by Philippine fishermen were capable of gathering information that could aid in “underwater warfare”, the country’s military said Tuesday, noting at least one had relayed a signal to China.The revelation follows months of confrontations between the Philippines and China in the disputed South China Sea and comes as Manila prepares for large-scale military exercises with treaty ally the United States this month.The drones were discovered between 2022 and 2024 in locations “important strategically in the defence and the security not only of the country but for international maritime navigation”, Philippine military officials told reporters at a briefing on Tuesday.Their data collection served purposes “beyond navigation”, according to Rear Admiral Roy Vincent Trinidad, who said the information could be used for “underwater warfare”, detecting threats and testing weaponry below the surface.While declining to definitively identify the drones’ origin, Trinidad noted that several bore Chinese markings, while at least one had relayed a signal to China.”Based on the technical study of the forensics of the SIM card (found on one of the five drones), the last contact of the card was in mainland China,” said Trinidad, who serves as the navy’s spokesman for South China Sea issues.Three of the drones were found off the north coast of the Philippines’ main island of Luzon, including two near the Balintang Channel south of Taiwan, he added.Two others were retrieved from what were identified as “critical chokepoints”, one near Masbate Island in the central Philippines and another near the southern island of Mindanao.The Chinese Embassy did not immediately respond to requests for comment.The Philippines separately on Tuesday said this year’s Balikatan, or “shoulder to shoulder”, exercises with their US counterparts would include a test of “integrated air missile defence” for the first time.The joint exercises, which will involve approximately 10,000 soldiers, will take place from April 21 to May 9.  “We are treating exercises as rehearsals. We are implementing a plan that has been planned out in the previous Balikatan and that is what we are going to execute at this time,” said Brigadier General Mike Logico.Philippine defence chief Romeo Brawner this month told troops in northern Luzon that the island would host the bulk of the Balikatan exercises because of its strategic importance.”These are the areas where we perceive the possibility of an attack. I do not want to sound alarmist, but we have to prepare,” he said.

China has told its airlines to stop taking deliveries of jets from American aviation giant Boeing, a report said Tuesday, as a trade war between Beijing and the United States deepens.Since President Donald Trump took office in January, the world’s two biggest economies have been locked in a tit-for-tat tariff war, with the US now charging levies of up to 145 percent on imports from China.Beijing has reacted furiously to what it calls unlawful “bullying” by Washington and has imposed retaliatory duties of 125 percent on US imports, dismissing further hikes as pointless.Bloomberg News reported Tuesday that China had also ordered airlines to halt deliveries of Boeing planes, citing people familiar with the matter.Beijing has also told its carriers to suspend purchases of aircraft-related equipment and parts from US companies, the financial news outlet reported the people as saying.AFP has contacted Boeing and China’s foreign ministry for comment.Beijing’s reciprocal tariffs on US imports would likely have triggered significant rises in the cost of bringing in aircraft and components.Bloomberg said the Chinese government is mulling helping carriers that lease Boeing jets and face higher costs.Trump’s fusillade of tariffs has roiled world markets and upended diplomacy with allies and adversaries alike.The mercurial US leader announced an abrupt freeze on further hikes last week but gave Beijing no immediate reprieve.US officials on Friday announced exemptions from the latest duties against China and others for a range of high-end tech goods such as smartphones, semiconductors and computers.

Equities mostly rose Tuesday as some stability returned to markets after last week’s rollercoaster ride, with auto firms boosted by Donald Trump’s possible compromise over steep tariffs on the sector.However, the US president’s unorthodox approach to trade diplomacy continues to fuel uncertainty among investors, with speculation over new levies on high-end technology and pharmaceuticals dampening sentiment.The announcement last week of exemptions for smartphones, laptops, semiconductors and other electronics — all key Chinese-made products — provided a little comfort, though Trump’s suggestion they would be temporary tempered the optimism.Traders gave a muted reaction to Treasury Secretary Scott Bessent’s remarks Monday that a China-US deal could be done in an apparent olive branch as the two economic powerhouses trade tariff threats.His comments came as Trump has hammered China with duties of up to 145 percent, while Beijing has imposed retaliatory measures of 125 percent.”There’s a big deal to be done at some point”, Bessent said when asked by Bloomberg TV about the possibility that the world’s largest economies would decouple. “There doesn’t have to be” decoupling, he said, “but there could be”.Meanwhile, Trump aide Kevin Hassett said the White House had received “more than 10 deals where there’s very, very good, amazing offers made to us”, but did not specify from which countries they came.After a broadly positive day on Wall Street, Asian markets pushed higher.Tokyo, Seoul, Hong Kong, Shanghai, Sydney, Singapore, Taipei, Mumbai, Manila and Jakarta all rallied, with London and Frankfurt also climbing but Paris edged down.The gains were boosted by a rally in autos after Trump said he was “very flexible” and “looking at something to help some of the car companies” hit by his 25 percent tariff on all imports.In Asia, Toyota jumped 3.7 percent and Hyundai jumped more than four percent, while in Europe Stellantis — maker of Peugeot, Jeep and Fiat — surged five percent in Milan and Volkswagen piled on close to three percent.And South Korea’s announcement of plans to invest an additional $4.9 billion in the country’s semiconductor sector gave a little lift to chip giants Samsung and SK hynix.Federal Reserve governor Christopher Waller provided some support to markets after suggesting he would back the central bank to cut interest rates to help the economy, instead of focusing on higher inflation.He pointed out that prices could see a transitory rise because of the tariffs but added that if Trump reverted to the crippling tariffs included in his “Liberation Day” on April 2 then officials would be ready to step in.”If the slowdown is significant and even threatens a recession, then I would expect to favour cutting the… policy rate sooner, and to a greater extent than I had previously thought,” he said in comments prepared for an event Monday. “In my February speech, I referred to this as the world of ‘bad news’ rate cuts. With a rapidly slowing economy, even if inflation is running well above two percent, I expect the risk of recession would outweigh the risk of escalating inflation, especially if the effects of tariffs in raising inflation are expected to be short lived.”However, OANDA senior market analyst Kelvin Wong warned central bankers would face some tough choices.”Combination of slowing growth and persistent inflation, hallmarks of a stagflation environment, poses a significant challenge for the US Federal Reserve, which may find it increasingly difficult to implement counter-cyclical monetary policies to support the economy,” he said in a commentary.- Key figures around 0810 GMT -Tokyo – Nikkei 225: UP 0.8 percent at 34,267.54 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 21,466.27 (close)Shanghai – Composite: UP 0.2 percent at 3,267.66 (close)London – FTSE 100: UP 0.7 percent at 8,192.85Dollar/yen: UP at 143.40 yen from 143.09 yen on MondayEuro/dollar: DOWN at $1.1349 from $1.1356 Pound/dollar: UP at $1.3217 from $1.3189Euro/pound: DOWN at 85.88 pence from 86.08 penceWest Texas Intermediate: UP 0.6 percent at $61.89 per barrelBrent North Sea Crude: UP 0.5 percent at $65.21 per barrelNew York – Dow: UP 0.8 percent at 40,524.79 (close)

Japanese authorities said Tuesday they had issued a cease-and-desist order to US tech titan Google over an alleged violation of national antitrust laws.It is the first time the country has issued such an order to a global technology giant, Japanese media reported, and follows similar moves in Europe and the United States.”We have concluded that Google LLC’s conduct threatens to impede fair competition,” Saiko Nakajima of the Japan Fair Trade Commission (JFTC) told reporters on Tuesday.The problem is “related to the implementation of search functions for Android smartphones, in violation of the antitrust law”, she said.The JFTC accuses Google of imposing binding conditions on Android smartphone manufacturers in Japan since at least July 2020.Specifically, it says Google made sure its online app store Google Play would be installed as part of a package with its web-browser search app Chrome.Google Play is so widely used that without it, “Android devices are basically unsellable”, a government source told AFP in December.No financial penalties were announced Tuesday, but Nakajima said the order would increase the options available to smartphone makers.”This will encourage competition and benefit” society, she said.Google Japan said it was “disappointed” by the JFTC’s findings.”(Our) agreements with Japanese partners help to promote competition and have undeniably boosted their ability to invest in product innovations which deliver more choice for consumers,” it said in a statement. “We will review the order thoroughly to determine our next steps.”The US government asked a judge in November to order the dismantling of Google by selling its widely used Chrome browser, in a major antitrust crackdown on the company.And the European Commission said in 2023 that Google should sell parts of its business and could face a fine of up to 10 percent of its global revenue if it fails to comply.In Japan, the JFTC conducted an on-site inspection of Amazon’s Japanese subsidiary in Tokyo last year, accusing it of abusing its industry dominance to drive down prices.Amazon Japan used its coveted “buy box” — a prominent spot on its website — against sellers, pressuring them into lowering prices to give it a competitive edge over rival e-commerce sites, the JFTC said.

South Korea on Tuesday announced plans to invest almost $5 billion extra in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.The country is a major exporter to the United States and its powerhouse chip and auto industries would suffer a hefty hit from President Donald Trump’s threatened 25 percent levies.Concerns about the sector have hammered the Seoul-listed shares of the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.Officials have now stepped up to provide more cover for the economically crucial industry by announcing an extra $4.9 billion will be pumped into it through 2026. “An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the finance ministry said in a press release.It warned “growing uncertainty” following rounds of US tariff threats had left the sector clamouring for government support.”To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won ($18.2 billion) to 33 trillion won,” the ministry said.Trump announced on his April 2 “Liberation Day” sweeping tariffs on its global trading partners, including the 25 percent on South Korean goods, before backtracking and suspending their implementation for 90 days.Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon”, finance minister Choi Sang-mok said during a meeting. “This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.”The government plans to expand support for the semiconductor industry, allocating 33 trillion won, with over 4 trillion won in fiscal spending set to be injected through 2026,” he said.The package includes funding for infrastructure development, including underground transmission lines at semiconductor clusters that are currently being built. “The government will boldly support investment by semiconductor companies,” said Choi, adding that the package included securing talent for the industry.The investment is part of a large revised supplementary budget proposal of 12 trillion won ($8.4 billion), and is required to be passed by the National Assembly. – Talks next week -The tariffs announcement has rocked global markets, with investors uncertain over whether they are a negotiating tactic or permanent US position.Trump has insisted he will not back down until he has reduced or even wiped out US trade deficits — while simultaneously signalling that he is ready to negotiate.The US trade deficit with South Korea was $66 billion in goods last year.Seoul last week unveiled a $2 billion emergency support package to help carmakers weather the storm.South Korea’s auto-related exports to the United States total-ed $42.9 billion last year, according to officials.Still, analysts said that for now, South Korea should not be too worried about its chips sector. “Unlike automobiles, which are already subject to tariffs, semiconductors are unique in that the United States lacks viable substitutes,” Kim Dae-jong, a professor at Sejong University, told AFP.”Our companies are building large-scale semiconductor plants in the US, contributing to local job creation, a point that will likely be emphasised,” Kim added. “Behind-the-scenes negotiations will likely continue, and there is a chance they could conclude on a positive note. There also remains the possibility that tariffs will be adjusted item by item in the future.”Trump last week spoke to South Korean Prime Minister Han Duck-soo, who is acting as president since Yoon Suk Yeol was removed from office for attempting to subvert civilian rule.US Treasury Secretary Scott Bessent said Monday that trade talks with South Korea would take place next week.

China’s President Xi Jinping paid tribute to Vietnam’s late revolutionary leader Ho Chi Minh on Tuesday, his last day of a trip to Hanoi that President Donald Trump said was aiming to “screw” the United States.Xi is in Vietnam as part of a Southeast Asia tour that will include Malaysia and Cambodia, with Beijing trying to position itself as a stable alternative to Trump as leaders confront US tariffs.The Chinese leader called on his country and Vietnam Monday to “oppose unilateral bullying and uphold the stability of the global free trade system”, according to Beijing’s state media.Hours later, Trump told reporters at the White House that their meeting was aimed at hurting the United States. “I don’t blame China. I don’t blame Vietnam. I don’t. I see they’re meeting today, and that’s wonderful,” he said.”That’s a lovely meeting… like trying to figure out, how do we screw the United States of America.”China and Vietnam signed 45 cooperation agreements on Monday, including on supply chains, artificial intelligence, joint maritime patrols and railway development.Xi said a meeting with Vietnam’s top leader To Lam on Monday that their countries were “standing at the turning point of history… and should move forward with joint hands”.Lam said after the talks that the two leaders “reached many important and comprehensive common perceptions”, according to Vietnam News Agency.- Rail links -On the final day of his visit, Xi laid a red wreath emblazoned with his name and the words “Long live Vietnam’s great leader President Ho Chi Minh” at the late leader’s mausoleum in central Hanoi.He is also due to attend the launch of the Vietnam-China Railway Cooperation, which will help manage an $8-billion rail project — announced this year — to link Vietnam’s largest northern port city to the border with China.Xi’s trip comes almost two weeks after the United States — the biggest export market for Vietnam, a manufacturing powerhouse, in the first three months of the year — imposed a 46 percent levy on Vietnamese goods as part of a global tariff blitz.Although the US tariffs on Vietnam and most other countries have been paused, China still faces enormous levies and is seeking to tighten regional trade ties and offset their impact during Xi’s first overseas trip of the year.Xi will head to Malaysia later Tuesday and then Cambodia on a tour that “bears major importance” for the broader region, Beijing has said.Xi earlier urged Vietnam and China to “resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment”. He also reiterated Beijing’s line that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere” in an article published on Monday in Vietnam’s major state-run Nhan Dan newspaper.China and Vietnam, both ruled by communist parties, already share a “comprehensive strategic partnership”, Hanoi’s highest diplomatic status.Vietnam has long pursued a “bamboo diplomacy” approach — striving to stay on good terms with both China and the United States.The two countries have close economic ties, but Hanoi shares US concerns about Beijing’s increasing assertiveness in the contested South China Sea.

Asian stocks were mixed Tuesday as some stability returned to markets after last week’s rollercoaster ride, with auto firms boosted by Donald Trump’s possible compromise over steep tariffs on the sector.However, the US president’s unorthodox approach to trade diplomacy continues to fuel uncertainty among investors, with speculation over new levies on high-end technology and pharmaceuticals dampening sentiment.The announcement last week of exemptions for smartphones, laptops, semiconductors and other electronics — all key Chinese-made products — provided a little comfort, though Trump’s suggestion they would be temporary tempered the optimism.Traders gave a muted reaction to Treasury Secretary Scott Bessent’s remarks Monday that a China-US deal could be done in an apparent olive branch as the two economic powerhouses trade tariff threats.His comments came as Trump has hammered China with duties of up to 145 percent, while Beijing has imposed retaliatory measures of 125 percent.”There’s a big deal to be done at some point” Bessent said when asked by Bloomberg TV about the possibility that the world’s largest economies would decouple. “There doesn’t have to be” decoupling, he said, “but there could be.”Meanwhile, Trump aide Kevin Hassett said the White House had received “more than 10 deals where there’s very, very good, amazing offers made to us”, but did not specify which countries.After a broadly positive day on Wall Street, Asian markets fluctuated.Tokyo and Seoul were among the best performers thanks to a rally in autos after Trump said he was “very flexible” and “looking at something to help some of the car companies” hit by his 25 percent tariff on all imports.Toyota and Mazda jumped five percent and Nissan more than three percent, while Seoul-listed Hyundai jumped more than four percent.South Korea’s announcement of plans to invest an additional $4.9 billion in the country’s semiconductor sector gave a little lift to chip giants Samsung and SK hynix.Sydney, Singapore, Taipei, Manila and Jakarta also rose. Hong Kong and Shanghai dipped with Wellington.Federal Reserve governor Christopher Waller provided some support to markets after suggesting he would back the central bank to cut interest rates to help the economy, instead of focusing on higher inflation.He pointed out that prices could see a transitory rise because of the tariffs but added that if Trump reverted to the crippling tariffs included in his “Liberation Day” on April 2 then officials would be ready to step in.”If the slowdown is significant and even threatens a recession, then I would expect to favour cutting the… policy rate sooner, and to a greater extent than I had previously thought,” he said in comments prepared for an event Monday. “In my February speech, I referred to this as the world of ‘bad news’ rate cuts. With a rapidly slowing economy, even if inflation is running well above two percent, I expect the risk of recession would outweigh the risk of escalating inflation, especially if the effects of tariffs in raising inflation are expected to be short lived.”However, OANDA senior market analyst Kelvin Wong warned central bankers would face some tough choices.”Combination of slowing growth and persistent inflation, hallmarks of a stagflation environment, poses a significant challenge for the US Federal Reserve, which may find it increasingly difficult to implement counter-cyclical monetary policies to support the economy,” he said in a commentary.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 34,285.02 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 21,379.50Shanghai – Composite: DOWN 0.3 percent at 3,254.04Dollar/yen: UP at 143.32 yen from 143.09 yen on MondayEuro/dollar: DOWN at $1.1327 from $1.1356 Pound/dollar: DOWN at $1.3179 from $1.3189Euro/pound: DOWN at 85.94 pence from 86.08 penceWest Texas Intermediate: UP 0.3 percent at $61.69 per barrelBrent North Sea Crude: UP 0.2 percent at $65.03 per barrelNew York – Dow: UP 0.8 percent at 40,524.79 (close)London – FTSE 100: UP 2.1 percent at 8,134.34

The United States opened the door on Monday to tariffs targeting high-end technology and pharmaceuticals, feeding the uncertainty gripping the global economy in a trade war that Chinese leader Xi Jinping warned can have “no winner.”After weeks of indications such a move was coming, the US commerce secretary formally announced “national security” investigations into pharmaceutical imports, and another on semiconductors and chip-making equipment.The specter of a broadening tariffs onslaught came as Treasury Secretary Scott Bessent touted momentum in talks with individual countries on reaching trade deals — but with little detail offered.On China, he said “there’s a big deal to be done” but was notably vague about the timing or chances of it happening. Talks have begun with Vietnam and were to start with Japan on Wednesday, then South Korea next week, Bessent told Bloomberg TV.Investors were relieved at the apparent easing of pressure in President Donald Trump’s wide-ranging but often chaotic attempt to reorder the world economy by using tariffs to force manufacturers to relocate to the United States.Wall Street stocks finished solidly higher on Monday as markets greeted more conciliatory signs from the Trump administration on exemptions for key electronics. Asian and European markets were also boosted.Trump remains firm that the tariffs will bring critical manufacturing back, with White House spokesman Kush Desai telling AFP Monday that “the entire administration is committed to working on Trump Time” — apparently referring to moving quickly — on the matter.Tit-for-tat exchanges have seen US levies imposed on China this year rise to 145 percent, and Beijing setting a retaliatory 125 percent barrier on US imports.Late Friday, US officials announced exemptions from the latest duties against China and others for a range of high-end tech goods such as smartphones, semiconductors and computers.But Trump suggested Sunday that the exemption would be only temporary and that he still planned to put barriers up on imported semiconductors and much else.In response, South Korea — a major exporter to the United States and home to the world’s largest memory chip maker Samsung — announced on Tuesday plans to invest an additional $4.9 billion in its semiconductor industry.The South Korean finance ministry said “growing uncertainty” over US tariffs had left the country’s powerful industry clamoring for support.On Monday, Trump once again pivoted to suggesting possible compromise, saying in remarks at the White House that he was “very flexible” and “looking at something to help some of the car companies” hit by his 25 percent tariff on all auto imports.”I don’t want to hurt anybody,” he said.China’s Xi, who kicked off a Southeast Asia tour with a visit to Vietnam, warned Monday that protectionism “will lead nowhere” and a trade war would “produce no winner.”- Short-lived relief? -Trump initially unveiled huge tariffs on countries around the world on April 2.He then made an about-face a week later when he said only China would face the heaviest duties, while other countries got a global 10 percent tariff for a 90-day period.The trade war is raising fears of an economic downturn as the dollar tumbles and investors dump US government bonds, normally considered a safe haven investment.And the latest wrangling over high-tech products — an area where China and other East Asian countries are key — illustrates the uncertainty plaguing investors.Washington’s temporary exemptions will benefit US tech companies such as Nvidia and Apple, which makes iPhones and other premium products in China.But any relief could be temporary.The US president said he would announce tariffs rates for semiconductors “over the next week,” and Commerce Secretary Howard Lutnick said they would likely be in place “in a month or two.”- Negotiations  -The White House says Trump remains optimistic about securing a trade deal with China, although administration officials have made it clear they expect Beijing to reach out first.And EU trade chief Maros Sefcovic said “the EU remains constructive and ready for a fair deal” after meeting with Lutnick and US trade envoy Jamieson Greer in Washington.Sefcovic said this deal could include reciprocity through a “zero-for-zero” tariff offer on industrial goods, but added in a social media post that “achieving this will require a significant joint effort on both sides.”The Trump administration also says that dozens of countries have already opened trade negotiations to secure deals before the 90-day pause ends.Japanese Economic Revitalization Minister Ryosei Akazawa will visit Washington for negotiations this week, with his country’s automakers hit by Trump’s 25 percent tariff on the auto sector.burs-sms/bfm/dhw/mtp

The world’s leading maker of electric vehicle batteries, Chinese firm CATL, posted a 32.9 percent jump in first quarter profit, even as demand for electric vehicles slows.The firm produces more than a third of all electric vehicle (EV) batteries sold worldwide, cooperating with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) was initially propelled to success by rapid growth in the domestic market.Net profit in the first quarter was up 32.9 percent year-on-year to 13.96 billion yuan ($1.91 billion), according to a statement CATL released on the Shenzhen Stock Exchange Monday.During the same period, CATL’s sales rose by 6.2 percent year-on-year to 84.7 billion yuan, the filing showed.CATL has been aided by strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.But following years of rapid growth, the world’s largest EV market is showing signs of flagging sales in the face of a broader slowdown in consumption.CATL warned in January that its slide in sales last year was likely due to a “decline in the prices of raw materials such as lithium carbonate”, which had forced the firm to adjust prices.Last year saw lithium prices fall significantly, partly due to market oversupply and weaker consumer demand for EVs.The trends have fuelled a fierce price war in the country’s expansive EV sector, putting smaller firms under huge pressure to compete while remaining financially viable.CATL is building its second factory in Hungary after launching its first in Germany in January 2023.

China is expected to post first-quarter growth of around five percent on Wednesday, buoyed by exporters rushing to stave off higher US tariffs but still weighed by sluggish domestic consumption, analysts say.Beijing and Washington are locked in a fast-moving, high-stakes game of brinkmanship since US President Donald Trump launched a global tariff assault that has particularly targeted Chinese imports.Tit-for-tat exchanges have seen US levies imposed on China rise to 145 percent, and Beijing setting a retaliatory 125 percent toll on US imports.Official data Wednesday will offer a first glimpse into how those trade war fears are affecting the Asian giant’s fragile economic recovery, which was already feeling the pressure of persistently low consumption and a property market debt crisis.Analysts polled by AFP forecast the world’s number two economy to have grown 5.1 percent from January to March — down from 5.4 the previous quarter.Figures released Monday showed Beijing’s exports soared more than 12 percent on-year in March, smashing expectations, with analysts attributed it to a “frontloading” of orders ahead of Trump’s so-called “Liberation Day” tariffs on April 2.They also expect that to have boosted economic growth in the first quarter.However, they warned the GDP reading may prove to be a rare bright spot in a year that promises more woe for the world’s second-largest economy.”China’s economy is facing pressure on multiple fronts,” Sarah Tan, an economist at Moody’s Analytics, said.”The export bright spot is fading as tariff hikes from the US took effect,” she added.”Domestic demand remains sluggish amid elevated unemployment and a property market stuck in correction,” Tan said.The first quarter was likely “quite good”, Alicia Garcia-Herrero, Asia Pacific chief economist at Natixis, told AFP, but the second “will be much worse”.She pointed to “lots of additional exports to the US to avoid additional tariffs”.Also helping to prop up results during the period was the increased consumption during Lunar New Year celebrations when millions of people travelled back to their hometowns, she said.- Help wanted -Beijing announced a string of aggressive measures to reignite the economy last year, including interest rate cuts, cancelling restrictions on homebuying, hiking the debt ceiling for local governments and bolstering support for financial markets.But after a blistering market rally last year fuelled by hopes for a long-awaited “bazooka stimulus”, optimism waned as authorities refrained from providing a specific figure for the bailout or fleshing out any of the pledges.And analysts expect Beijing to jump in with extra support to cushion the tariff pain.Key to that will be stabilising the long-suffering real estate services sector, which now makes up six percent of GDP, according to analyst Guo Shan.”If China could withstand its real estate adjustment in the past three years, it should be able to manage the US tariffs, especially if it can stabilise the real estate sector this year,” Guo, a partner with Chinese consultancy firm Hutong Research, told AFP.Tan at Moody’s Analytics also said she expected Beijing to pull fiscal and monetary levers this year.”The government will roll out more stimulus targeted towards households, and the People’s Bank of China will likely slash key lending rates,” she added.China is trying to tariff-proof its economy by boosting consumption and investing in key industries.But the escalating rift between the two countries could hit hundreds of billions of dollars in trade and batter a key economic pillar made even more vital in the absence of vigorous domestic demand.”Against this backdrop, we consider significant downside risk to China’s GDP growth,” ANZ analysts wrote in a note.An “extreme scenario” would be China experiencing another external shock like it did in the 2008 financial crisis, analysts said.Growth in the second quarter would likely be worse given the tariff dynamics, Guo told AFP.”Exports will decline, and investment may also slow as uncertainties affect companies’ decision making,” Guo said.China’s top leaders last month set an ambitious annual growth target of around five percent, vowing to make domestic demand its main economic driver.Many economists consider that goal to be ambitious given the problems facing the economy.