By Elaine Kaltenbach
Chinese leaders have downplayed the potential impact of US President Donald Trump’s trade war and say it has the ability to protect jobs from higher tariffs on China’s exports and limit damages.
A briefing by several senior officials from various government ministries on Monday appeared to aim to support businesses and support unemployed, simpler lending conditions and other policies to combat the impact of up to 145% tariffs on US imports from China.
Following a meeting of China’s powerful Politics last week, analysts said they focused on how to maintain growth despite slower exports.
“China policymakers are in higher standby mode,” Louise Loo, lead economist at Oxford Economics, said in an AA report. She noted that the policy is similar to the previous declaration.
The status of the White House exchange with Chinese leader Xi Jinping remains unknown, if any.
Last week, Trump said he was actively negotiating with the Chinese government on tariffs. Meanwhile, U.S. Treasury Secretary Scott Bescent said the meeting has not yet begun.
Beijing has denied that such talks are ongoing, and China has denied retaliation against Trump’s tariffs by imposing 125% import duties on other measures on products from the US.
An official spoke on Monday repeated China’s rejection, which leaders there called bullying.
On Sunday, April 27, 2025, a shore crane on a vessel at a container terminal in Shanghai, China, loads containers into the vessel (Chinatopix via AP)
Trucks will pass new vehicles for export at the port of Shanghai, China on Sunday, April 27, 2025 (Chinatopix via AP)
File – President Donald Trump on the left will take a photo with Chinese President Xi Jinping at a bystander meeting at the G-20 Summit held in Osaka, Japan on June 29, 2019.
File – Ship outlook under construction at the Shanghai Shipyard in Shanghai, China on Sunday, April 20, 2025 (AP, Chinatopix via File)
1 of 4
On Sunday, April 27, 2025, a shore crane on a vessel at a container terminal in Shanghai, China, loads containers into the vessel (Chinatopix via AP)
Enlarge
“They form a chip to negotiate from the thin air and go back to words from the bully, which makes it more and more clear to everyone.
The trade war between the two biggest economies in the world can affect the world and cause a recession in the United States. China is struggling to recharge its own growth after job losses and other shocks of the pandemic.
The International Monetary Fund and some investor economists have downgraded China’s growth estimates to around 4% this year. Millions of export-oriented jobs are at stake.
Still, Chinese officials say they believe the economy will have momentum to expand at a target rate of around 5% this year, in line with growth in 2024.
Yu Jiadong, deputy minister of human resources and social security, told reporters in Beijing that a complete and objective analysis shows China’s “employment policy toolbox is sufficient.”
The government will help businesses maintain workers and strengthen support for businesses to encourage entrepreneurship among the unemployed, Yu said.
China can also manage without importing energy from the US, said Zhao, deputy NDRC director.
“Companies that reduce or even halt energy imports from the US will not affect our country’s energy supply,” he said.
China is gradually cutting down US grain and other agricultural imports, and Zhao said it would not compromise food supply if it ceased such purchases. Most grain purchases are aimed at livestock feed, and he said the international market has enough stock to compensate for a decline in corn, sorghum, soybeans and oil imports from American suppliers.
Zou Lan, the central bank’s lieutenant governor, said the People’s Bank of China will reduce interest rates and ease the reserve requirements to relax as needed to promote loans.
“A progressive policy will be implemented in a timely manner to stabilize employment, businesses, markets and expectations,” Zou said.
China is able to expand domestic demand through various policies, including rebates to replace old vehicles, appliances and factory equipment with new equipment, and forecasts demand for equipment upgrades to exceed 5 trillion yuan ($34.8 billion) per year.
In the long term, China is also promoting the transition from rural areas to cities, Zhao said.
“Each one point increase in urbanization rates can stimulate trillions of investment demand,” he said. “Our country has very realistic possibilities and space to increase domestic demand.”
AP video producer Borg Wong contributed.
Original issue: April 28, 2025, 12:16pm EDT
