Agencies
China’s top leaders on Friday committed to bolstering support for the economy while opposing “unilateral bullying” in global trade, seen as a subtle critique of the hefty tariffs recently introduced by U.S. President Donald Trump.
The world’s two largest economies are engaged in a high-stakes tit-for-tat trade war that has spooked markets and spurred major manufacturers to reconsider supply chains.
During a gathering of the Chinese Communist Party’s top decision-making body focused on economic work and attended by President Xi Jinping, leaders acknowledged that “the impact of external shocks is increasing,” state news agency Xinhua reported.
They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices,” said Xinhua.
The brutal trade war comes as China’s economy strains under the weight of longstanding woes in the property sector and the reluctance of consumers to pull out their wallets.
China’s top policymakers on Friday pledged to support firms and workers most affected by the impact of U.S. tariffs and urged the country to prepare for worst-case
scenarios.
The Politburo meeting reiterated plans to accelerate debt issuance, ease monetary policy and vowed to support employers to safeguard jobs.
The meeting saw leaders discuss a range of domestic economic issues, emphasising the need to “enhance the role of consumption in stimulating economic growth,” according to Xinhua.
They also called for action to increase incomes and “vigorously develop service consumption” as well as the implementation of key rate cuts at “appropriate times.” Economists say the Chinese economy will need to depend more on domestic consumption to sustain growth throughout the coming years.
Beijing is targeting an annual growth of 5% this year, though experts consider that goal to be ambitious.
The economy grew 5.4% in the first quarter, beating expectations, but markets fear a sharp downturn in the year ahead as U.S. tariffs pose the biggest risk to the world’s second-largest economy in decades.
