No major changes in US policies

Xu Xiujun

Given some specific economic indicators, the risks in the US economy are building up. For instance, bubbles in both the stock market and real estate market have begun to emerge as housing prices have exceeded the pre-financial crisis level while the stock market has experienced an unusually long period of sharp rise. Besides, there has been no reduction in US debt; instead, it has accumulated further. And the tax cuts the Trump administration promotes will further weaken the government's financial position.

A Democrats-dominated House may make it difficult for Trump to implement his economic policies, but it cannot possibly overhaul the policies. And since the Republicans still enjoy greater say in the Senate, Trump could slow down a bit and use roundabout ways to implement his policies.

Also, he is unlikely to back away from his trade policy toward China, as it has always been one of his core policies.

Therefore, the election results will hamper the Trump administration's progress to some extent, but may not deal a real blow to Trump.

Xu Xiujun, an associate research fellow at the Institute of World Economics and Politics, Chinese Academy of Social Sciences