China’s leaders are not too worried about the impact of U.S. President Donald Trump’s trade war. They believe they have the tools to protect jobs and reduce the damage caused by higher tariffs on Chinese exports to the U.S.
On Monday, senior Chinese officials from various government departments spoke to reassure the public. They promised support for companies and workers affected by the tariffs, easier access to loans, and other policies to help manage the situation. This came after a recent meeting of China’s top political leaders, where they discussed ways to keep the economy growing despite slowing exports.
Louise Loo, a lead economist at Oxford Economics, said the government’s actions were similar to previous plans. However, there’s still uncertainty about whether the U.S. and China are negotiating on the trade issue. Trump mentioned that he’s in talks with China about tariffs, while U.S. Treasury Secretary Scott Bessent also made comments about the situation.
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China’s officials rejected the way the U.S. has been handling the trade war. Zhao Chenxin, a senior official at the National Development and Reform Commission (NDRC), said the U.S. actions were unfair and harmful to global trade. He argued that the so-called “reciprocal tariffs” imposed by the U.S. go against international trade rules and hurt other countries’ rights and interests.
The trade war between the U.S. and China has the potential to affect the global economy. China is still recovering from the economic damage caused by the pandemic, but officials are confident that the economy will grow at their target rate of 5% this year.
Yu Jiadong, a government official in charge of employment, said China has enough policies in place to protect jobs and support businesses. The government will also encourage entrepreneurship and help companies keep their workers.
China can also manage without U.S. energy imports, according to Zhao. He said that if Chinese businesses stop buying energy from the U.S., it won’t affect China’s energy supply. Additionally, China has been reducing imports of U.S. farm products, such as grains, and Zhao assured that this wouldn’t cause any food shortages. The international market has enough supplies to make up for any reduction in U.S. imports.
Also See: Is China About to Drop Major Tariffs on U.S. Goods? Find Out What This Means for the Global Economy!
Zou Lan, a deputy governor of China’s central bank, mentioned that the People’s Bank of China would lower interest rates and relax banking rules to help businesses get loans. He also said China would introduce policies to stabilize jobs, businesses, markets, and expectations.
In the longer term, China plans to boost domestic demand. Zhao said the government could stimulate demand by offering rebates for replacing old vehicles and factory equipment. He also mentioned that more people moving to cities could create trillions of dollars in investment demand, helping to drive the economy.
In conclusion, China is confident that it has the tools to protect its economy and continue growing despite the trade war with the U.S.
