Morgan Stanley Warns U.S.-China Trade War Could Threaten Corporate Earnings Recovery
- THE CHINA NOW
- Apr 11
- 2 min read
Summary
Morgan Stanley warns that the escalating U.S.-China trade war could threaten the recovery of China's corporate earnings.
Companies heavily reliant on U.S. exports, like BYD Electronics, Lenovo, and Luxshare Precision, have faced significant stock declines in response to new tariffs.
The trade war, marked by reciprocal tariffs, threatens China’s economic growth targets, with the potential for a 10% tariff to undermine the country’s 4.5% growth forecast.
Morgan Stanley has issued a warning that China’s corporate earnings recovery could be in jeopardy as the U.S.-China trade war intensifies. The investment bank cited the latest round of tariff increases, which have created uncertainty in the financial markets and dampened growth expectations for Chinese firms in 2025.
