Chinese officials dismissed concerns about US tariffs this week, asserting they have ample tools to protect jobs and limit economic damage from the ongoing trade dispute with Washington.
Senior officials from multiple government ministries held a briefing to shore up confidence, promising support for companies and the unemployed while pledging easier lending conditions to counter the impact of US tariffs of up to 145% on Chinese exports.
“Chinese policymakers are on heightened standby mode,” said Louise Loo, lead economist at Oxford Economics, noting that current policies mirror earlier government announcements.
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The briefing followed a meeting of China’s powerful Politburo last week, where leaders focused on maintaining economic growth despite slowing exports. Officials emphasized their confidence in reaching the country’s target growth rate of 5% this year.
“Enterprises reducing or even stopping energy imports from the United States will have no impact on our country’s energy supply,” said Zhao Chenxin, deputy director of the National Development and Reform Commission, seeking to highlight that China’s economy is independent from US trade.
Yu Jiadong, vice minister of Human Resources and Social Security, told reporters that a “full and objective analysis shows China’s employment policy toolbox is sufficient,” as authorities prepare to increase support for companies to help them retain workers.
China’s central bank also signaled readiness to cut interest rates and relax reserve requirements as needed to encourage lending, according to a deputy governor who spoke at the briefing.
Officials rejected claims of ongoing negotiations with Washington after US President Donald Trump said last week he was actively negotiating with Beijing, while Treasury Secretary Scott Bessert suggested “there is a path” to an agreement. Beijing has denied that such talks are underway and has retaliated against Trump’s tariffs with 125% import duties on American products.
Zhao called US tariffs “reciprocal tariffs” that “severely go against historical trends and economic laws, impact international trade rules and order, and seriously impair the legitimate rights and interests of countries.”
Reports emerged over the weekend that suggest possible behind-the-scenes developments in the trade dispute. According to Hong Kong’s Ming Pao newspaper, major US retailers, including Walmart, Home Depot, and Target have instructed Chinese suppliers to resume shipments that had been suspended due to tariffs, with the retailers agreeing to absorb the additional costs.
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