Jul 24, 2018 - World

China ramps up domestic spending to offset Trump's trade war

Erica Pandey, author of @Work

The Chinese yuan. Photo: VCG via Getty Images

The Chinese government is spending $199 billion on infrastructure to prop up domestic growth as the trade fight with the U.S. rages on, reports the South China Morning Post.

Why it matters: China is prepared to both retaliate and out-wait the U.S. in a trade war, and it has tools — like upping government spending — to blunt the effects of Trump's tariffs.

The big picture:

  • China has a narrow government deficit — about 2.6% of GDP — compared to the United States', which is estimated to reach 4.2% of GDP. As a result, the Chinese government can massage policies to promote domestic growth as the trade fight escalates.
  • Experts say China may also deliberately devalue the yuan to stave off trade war effects.
  • China is also cutting corporate taxes and increasing loans to businesses, CNN Money reports.

The bottom line: We're unlikely to see either side back down in the trade war any time soon.

Go deeper

Marisa Fernandez
9 mins ago - Health

Los Angeles and San Diego public schools will be online only this fall

Alhambra Unified School District. Photo: Frederic J. Brown/AFP via Getty Images

Public schools in Los Angeles and San Diego, the two largest public school districts in California, will not be sending children back to campuses in the fall and will instead administer online classes only due to concerns over the ongoing threat of the coronavirus.

Why it matters: The two districts, which together enroll about 825,000 students, are the largest in the country thus far to announce that they will not return to in-person learning in the fall, even as the Trump administration aggressively pushes for schools to do so.

This story is breaking news. Please check back for updates.

Axios
Updated 19 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 12,984,811 — Total deaths: 570,375 — Total recoveries — 7,154,492 — Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 3,327,388— Total deaths: 135,379 — Total recoveries: 1,006,326 — Total tested: 40,282,176 — Map.
  3. World: WHO head: There will be no return to the "old normal" for the foreseeable future — Hong Kong Disneyland closing due to surge.
  4. States: Cuomo says New York will use formula to determine if reopening schools is safe.
  5. Politics: Mick Mulvaney: "We still have a testing problem in this country."
Go deeper (<1 min. read)Arrow
Marisa Fernandez
45 mins ago - Health

Cuomo: New York will use formula to determine if it's safe to reopen schools

New York Gov. Andrew Cuomo said Monday that schools will only reopen if they meet scientific criteria that show the coronavirus is under control in their region, including a daily infection rate of below 5% over a 14-day average. "We're not going to use our children as guinea pigs," he added.

The big picture: Cuomo's insistence that New York will rely on data to decide whether to reopen schools comes as President Trump and his administration continue an aggressive push to get kids back in the classroom as part of their efforts to juice the economy.

Go deeper (1 min. read)Arrow