[NEW YORK] Chinese officials reiterated their plan to strengthen support for employment and the economy, as a trade war with the Trump administration continues with no immediate off-ramp in sight.
The government will “fully prepare contingency plans, and constantly improve the policy toolbox for stabilising employment and the economy”, Zhao Chenxin, Vice-Chairman of the National Development and Reform Commission, said in a Monday (Apr 28) briefing.
The remarks add to Chinese policymakers’ repeated attempts to reassure the public that China will take measures to aid growth as record US tariffs have dented the economy’s outlook. Zhao said authorities are “fully confident” in reaching the expansion target of around 5 per cent for 2025.
Officials largely repeated vows last week by the decision-making Politburo, led by President Xi Jinping, to prepare for external shocks. Zhao also highlighted the economy’s resilience in the first three months of the year, including the stronger contribution of domestic demand to growth compared to the previous quarter.
Yu Jiadong, Vice-Minister of Human Resources and Social Security, acknowledged the adverse effects of US tariffs, saying some exporters face business difficulties and some jobs are affected. He said the government will take steps to improve workers’ skills and prioritise youth employment.
Despite the headwinds, Beijing is signalling it’s in no rush to be aggressive in expanding economic stimulus weeks after unveiling measures including a commitment to run a record-high budget deficit.
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China will free up more cash for banks and cut interest rates at an appropriate time, according to Zou Lan, deputy governor of the Chinese central bank, reiterating earlier vows. The People’s Bank of China will also guide lenders to maintain loans to certain exporters in distress, he said.
Zou reiterated China would keep the yuan stable at a “reasonable and equilibrium” level, adding that the foreign exchange market’s resilience provides strong support for a stable yuan.
China appeared to have resisted jumping into any trade negotiations with Trump. Officials last week dismissed claims that there were talks on reaching a trade deal and reiterated a demand for Washington to revoke all unilateral tariffs.
Sheng Qiuping, vice-minister of commerce, also attended the briefing. BLOOMBERG