Donald Trump masks in a Latex Art and Crafts Factory in
President-elect Donald Trump is expected to adopt policies to reduce the US' involvement in global affairs, leaving more responsibilities for China to shoulder on the international stage, an American economist said at a recent forum in Beijing.
Lawrence Summers, former president of Harvard University, predicted that the president-elect would inherit the Republican Party's tradition to cut domestic expenditure and reduce taxes and regulatory supervision for business development, which will be replenished by a tradition-breaking policy to prioritize domestic affairs by shrinking the global role of the US.
Summers said that Trump's expansionary fiscal policy would augment the possibility of interest rate hikes by the Federal Reserve, which will lead to the US dollar's appreciation and rise in stock prices.
The economist further pointed out that the possible tightening of monetary policy and the US import surge caused by a stronger US dollar under Trump's presidency will drive the global economy, but he stressed that the economies including China would be plagued with concerns over US dollar-denominated debt and capital outflows.
(The article is translated and edited by Ding Yi.)