China has said it is ready to protect its economy and jobs, even as new U.S. tariffs threaten Chinese exports. Top officials held a press conference on Monday, aiming to boost confidence among businesses and workers. They promised more support, easier loans, and steps to help counter U.S. tariffs that could reach as high as 145%.
The press event followed a recent meeting of China’s Politburo. Experts said leaders there focused on keeping the economy growing, even as exports slow.
China Responds to US Tariff Moves
U.S. President Donald Trump recently announced new tariffs on Chinese goods. At the same time, China answered with its own set of tariffs, putting 125% duties on American products. While Trump said he is negotiating with China, U.S. Treasury Secretary Scott Bessent confirmed that talks have not started. Beijing also denied that any negotiations are happening.
Chinese officials repeated that they view U.S. actions as unfair. Zhao Chenxin, deputy director of China’s National Development and Reform Commission (NDRC), said the new U.S. tariffs “go against historical trends and economic laws.” He added that the moves hurt international trade rules and damage the rights of many countries.
China Focuses on Domestic Strength
Despite the trade tensions, China believes it can still meet its 5% growth target for 2025. Yu Jiadong, vice minister of Human Resources and Social Security, said China has a strong “employment policy toolbox.” He stressed that the government would help businesses keep workers and encourage job creation through entrepreneurship programs.
Zhao Chenxin also said China could do without U.S. energy imports. He noted that a drop or halt in imports from the U.S. would not hurt China’s energy supply. Similarly, Zhao said the country can manage without U.S. farm products. China has already been reducing imports of American grains like corn and soy. He said global markets can easily fill any gaps.
Support for Businesses and Workers
Chinese leaders said they will help businesses by making loans easier to get. Zou Lan, deputy governor of the People’s Bank of China, said the bank would cut interest rates and relax reserve rules if needed. This move would make borrowing cheaper and support companies in keeping their workers.
Zhao added that new policies would support the economy by encouraging people to replace old cars, appliances, and factory equipment with new ones. He predicted that yearly demand for such upgrades could reach over 5 trillion yuan ($34.8 billion).
Urbanization as a Long-Term Strategy
In the long run, China plans to boost its economy by moving more people from rural areas to cities. Zhao said that every 1% rise in the urbanization rate could spark trillions of yuan in new investment. Urbanization would not only grow demand for housing but also for goods and services, keeping the economy strong.
Global Risks and China’s Economic Plans
While China feels confident, the trade war poses risks for both economies. Some experts warn that a deepening U.S.-China trade fight could push the United States into a recession. This would have effects worldwide.
China is also trying to recover from the economic shocks caused by the COVID-19 pandemic. Lower exports and job losses have made growth harder. Still, officials remain upbeat that they can meet the 5% growth goal, similar to last year.
Other efforts to boost the economy include incentives for technology companies, plans to develop green energy sectors, and more investments in public infrastructure projects. These moves aim to create jobs and spark new areas of growth.