Newspaper featuring a photo of US President-elect Donald Trump at a news stand in Beijing. Photo: AFP/Greg Baker

On Friday Chinese state-run newspaper the People’s Daily published an editorial, entitled “America’s tax reform—who is the winner?”, harshly criticizing the US tax legislation proposal unveiled Thursday.

The editorial, coming from an outlet known to reflect views from China’s central government, said that the tax proposal would incite a “tax war,” leading to a race among powerful nations to lower taxes.

The commentary went on to add that the tax revenue saved by corporations would likely not be invested in the real economy, but would be invested in equity markets, increasing systemic risk associated with a stock market bubble.