BEIJING, Apr 28 — China’s leaders are sending a clear message to both local businesses and workers that they are prepared to weather the storm of US tariffs. Despite the mounting pressure from the ongoing trade war, China insists it has the tools necessary to protect jobs and limit the economic fallout from the tariffs being imposed on its exports.
In a press briefing held Monday, senior officials from various government ministries assured the public that the government is actively supporting companies and workers, with policies ranging from easier access to loans to enhanced support for the unemployed. This comes as the US raises tariffs to as high as 145% on Chinese goods.
The announcement followed a key Politburo meeting last week, where discussions focused on ways to ensure economic stability amid slowing exports. Analysts note that while the policies are a response to the trade dispute, they also echo China’s earlier promises to support its economy.
Louise Loo, lead economist at Oxford Economics, pointed out that the Chinese government is on high alert, standing by to introduce additional measures as needed. However, she also noted that the new strategies feel quite similar to those previously laid out.
While uncertainty lingers over the status of potential talks between President Xi Jinping and President Trump, Beijing has denied any ongoing negotiations, with Chinese officials remaining firm in their opposition to what they describe as unfair tactics by the US. “Bargaining chips are being made out of thin air,” said Zhao Chenxin, deputy director of China’s National Development and Reform Commission. “This approach goes against historical trends and international trade rules.”
The trade war between the two largest economies in the world continues to pose a significant risk to global stability, with the potential to spark a recession in the US. Yet, despite the challenges, Chinese officials remain optimistic about their ability to maintain a growth rate of approximately 5% this year.
Yu Jiadong, Vice Minister of Human Resources and Social Security, reassured the public that China’s “employment policy toolbox” is more than adequate to address current challenges. The government is committed to helping companies retain employees while encouraging entrepreneurship among the unemployed.
Officials also emphasized that China could easily manage without imports of US energy, as well as certain agricultural products like grains, which are largely used for animal feed. Zhao added that the country’s energy supply would not be disrupted by halting US imports, as the global market can easily make up for the shortfall.
In response to these economic pressures, the People’s Bank of China is prepared to cut interest rates and relax reserve requirements to stimulate lending. “We will introduce timely measures to stabilize employment, enterprises, and markets,” said Zou Lan, a deputy governor of the central bank.
Looking ahead, China is focused on driving domestic demand through a series of policy measures. This includes encouraging consumers to trade in old vehicles and appliances for newer models, a move that is expected to generate over 5 trillion yuan ($34.8 billion) in investment each year. Additionally, China plans to further promote urbanization, with each 1% increase in the urbanization rate potentially triggering trillions in investment.
“We have very real potential to expand domestic demand,” Zhao concluded, painting a picture of long-term resilience as China adapts to its evolving economic landscape.
