China prepared for economic shocks as Trump's tariff decision looms
What's the story
Chinese Premier Li Qiang has said that China is prepared to absorb potential shocks to its economy, ahead of tariff announcements from the US. At the China Development Forum in Beijing, he said, "Countries should open up markets in the face of growing economic fragmentation." Li's comments come in the wake of US President Donald Trump announcing more tariffs on trading partners next month.
Market openness
Premier Li calls for market openness amid global instability
Qiang pointed to increasing instability and uncertainty in the global economy, saying, "It is even more important for each of our countries to open up markets more, and for all of our businesses to share their resources more." He made the call for more open markets in front of global business leaders, including Apple CEO Tim Cook and Qualcomm President Cristiano Amon. The forum seeks to promote high-level dialogue between China and the world.
Economic measures
China to cut interest rates, reserve requirement ratio
Apart from market openness, Li Qiang repeated the central bank's pledge of cutting interest rates and reserve requirement ratio when "timely." He also assured more support will be provided as needed to ensure smooth economic operation. These moves are part of China's renewed efforts to attract foreign businesses after last year's dramatic fall in inbound investment.
Economic strategy
Consumption action plan to bolster economy
China has unveiled a consumption action plan to further bolster the economy against external risks. The country has set a highly ambitious economic growth target of 5% for 2025 and increased its fiscal deficit target to a record high in over 30 years. However, economists say if the trade war with the US escalates, significant stimulus will be needed for China to meet its growth targets this year.