Beijing, China — As the trade tensions escalate between the United States and China, Chinese leaders are attempting to reassure the public and markets that they possess the tools needed to mitigate the impact of increasing U.S. tariffs. Officials gathered for a briefing on Monday to outline strategies aimed at safeguarding jobs and stabilizing the economy amid fears of a potentially deepening trade war.
During the meeting, senior officials from various government departments emphasized their commitment to supporting both companies and workers affected by the heightened tariffs, which can reach as high as 145%. Their comments followed a recent session of the Politburo, China’s top decision-making body, which focused on strategies to maintain economic growth despite the challenges posed by diminishing export levels.
Louise Loo, the lead economist at Oxford Economics, noted in her analysis that the proactive measures discussed by Chinese policymakers echo previous government reassurances. “Policymakers are clearly on heightened alert,” she stated, highlighting concerns about sustaining economic momentum amid external pressures.
While U.S. President Donald Trump has claimed to be engaged in active negotiations regarding tariffs, the state of communications between Washington and Beijing remains uncertain. Chinese officials have dismissed the existence of any formal talks, maintaining that their government will not be subjected to what they term “bullying” by the U.S.
Zhao Chenxin, deputy director of the National Development and Reform Commission, criticized the U.S. approach to trade, asserting that the imposition of reciprocal tariffs contradicts both historical trends and economic practices, negatively affecting international trade relations. He described the current U.S. strategy as an unfounded assault on legitimate economic interests.
The ongoing trade conflict poses significant risks, including the possibility of a recession in the United States with potential global ramifications. Meanwhile, China faces its own economic hurdles, working to regain stability and growth following disruptions from the pandemic. Despite a downgrading of growth projections to around 4% by multiple economists, Chinese officials remain optimistic, aiming for a growth target of 5% this year.
Yu Jiadong, vice minister of Human Resources and Social Security, conveyed confidence in China’s employment strategies. He indicated that the government would enhance support for companies to retain jobs and promote entrepreneurial efforts among the unemployed. Additionally, Chinese officials assured that the nation could adapt without relying on U.S. energy imports.
Zhao emphasized that a reduction in American energy imports would not adversely affect China’s energy supply. Moreover, he announced that China has been progressively decreasing its imports of U.S. agricultural products, asserting that it would not undermine the country’s food security.
The People’s Bank of China has signaled its intentions to cut interest rates and ease reserve requirements to bolster lending. Zou Lan, a deputy governor, mentioned that timely policy adjustments would be implemented to stabilize employment and market expectations.
Looking ahead, Zhao suggested that China can significantly boost domestic demand through various incentives, including rebates for upgrading old vehicles and equipment. He forecasts that demand in this sector could reach an impressive 5 trillion yuan (approximately $34.8 billion) annually. Additionally, Zhao highlighted long-term plans to increase urbanization, indicating that every rise in urbanization could stimulate trillions in investment.
With these strategies in the pipeline, Chinese leaders project confidence in overcoming the economic challenges posed by external pressures, stressing the country’s resilience and capacity for growth.