As per Chinese Economy Blue Book 2019, released by the Chinese Academy of Social Sciences (CASS), the ongoing trade war between China and the US may be the biggest external risk for the Chinese economy in 2019, but it could also help the country further deepen reform and open-up.

According to Lou Feng, Director of the Economic Modeling Team at the Institute of Quantitative and Technical Economics under CASS, the biggest external impact on the Chinese economy next year will be the trade war. He urged both China and the US to strengthen consultation and avoid further escalation of the trade war.

Lou also called for deeper reforms to boost China's manufacturing transformation and upgrading. Many Chinese analysts have argued that the trade war could prompt China to carry out new reform and opening-up measures, which is a good thing, in theory. But others cautioned that China shouldn't be driven off its intended course under pressure.