Goldman Sachs economists have suggested that if the United States increases tariffs on Chinese goods, it could have a negative impact on China's economic growth. However, it may also lead to a significant increase in consumer spending within the country.

The analysts, led by Xinquan Chen, believe that in response to these tariffs, the Chinese government may need to provide more fiscal support to stimulate domestic demand. The report emphasizes that the current government stimulus measures, such as the household appliances trade-in program and support for the real estate sector, are already set to redirect growth inward in the coming year. This shift in strategy could be a significant change for China as it adjusts to external pressures.