At a Monday press conference, top officials from various ministries outlined measures to support businesses and workers, including easier credit access and employment incentives. The announcements came after a recent Politburo meeting that prioritized keeping economic growth stable amid declining exports.
“Policymakers are in heightened readiness,” said Louise Loo, lead economist at Oxford Economics, who noted the response mirrors earlier stimulus efforts.
The status of direct dialogue between Washington and Beijing remains murky. While Trump claimed talks with Chinese President Xi Jinping were underway, Treasury Secretary Scott Bessent contradicted that, and Beijing flatly denied any discussions. China has responded with 125% retaliatory tariffs on US products and criticized Washington’s tactics as coercive and unpredictable.
“These so-called ‘reciprocal tariffs’ distort global trade rules and undermine the rights of sovereign nations,” said Zhao Chenxin of the National Development and Reform Commission, slamming what he called American “bullying.”
The intensifying trade row could push the US economy toward recession, analysts warn, while China continues its struggle to revive post-pandemic growth. Several institutions, including the IMF, have lowered China’s 2025 growth outlook to around 4%, citing job losses in export-heavy sectors.
Despite this, Chinese officials maintain that the country is on track to meet its 5% growth target. Vice Minister of Human Resources Yu Jiadong said Beijing has ample policy tools to stabilize the labor market, including support for job retention and entrepreneurship.
Energy security and food supplies won’t be affected by reduced US imports, Zhao asserted, noting China can easily source fuel and agricultural products elsewhere.
