Iran War Could Alter Beijing's Policy Calculus, Economist Says

Mao Zhenhua, a professor at the University of Hong Kong's Business School and co-director of Renmin University's Institute of Economic Research, remarked that the US-Israel war's influence on Iran and its repercussions for China have been relatively minor. However, he suggested it might still lead Beijing to adjust its macroeconomic strategies and concentrate on internal economic matters. Speaking in Hong Kong, Mao expressed concern about the conflict's ongoing nature as it approaches its sixth month, which could necessitate changes to existing plans. He believes that while China will likely experience the least impact among major economies, the government remains vigilant. For the rest of the year, Beijing aims to mitigate disruptions and safeguard the domestic landscape. Despite a slowdown in economic growth during the second quarter, Mao affirmed China's resilience and ability to navigate further challenges, having managed the war's initial effects more effectively than many peers.