Amid the intensifying trade conflict with the U.S., China’s senior leaders are planning an urgent meeting to strategize ways to stabilize the domestic economy and financial markets.
The meeting, expected to take place on Wednesday, comes after U.S. tariffs on Chinese imports surged to a staggering 104%, a significant escalation that has shaken global markets.
High-Level Gathering to Address Economic Concerns
The meeting will bring together top officials from the State Council and several key government and regulatory bodies, according to sources familiar with the situation. The discussion is anticipated to focus on measures to bolster domestic consumption and provide support to capital markets, with potential initiatives such as export tax rebates on the agenda.
The central bank, People’s Bank of China (PBOC), along with the Ministry of Finance (MOF), Ministry of Commerce (MofCom), the National Financial Regulatory Administration (NFRA), and the China Securities Regulatory Commission (CSRC), will all likely have representatives at the meeting. These institutions are expected to play a key role in formulating responses to the economic strain caused by the ongoing trade war.
Countermeasures and Stimulus Plans
Although Beijing has already implemented counter-tariffs in response to U.S. actions, the escalating tension has placed China in a difficult position. The country’s economy, already facing challenges from a prolonged property crisis and high local government debt, has been further affected by the global market downturn spurred by Trump’s tariffs.
In light of this, the Chinese government has been exploring measures to counteract the negative impact, such as providing additional support to local markets and offering tax cuts and subsidies to stimulate domestic demand. These measures, which could be rolled out in the coming weeks, aim to restore confidence in the economy and help shield it from external shocks.
Uncertain Outlook Amid Global Trade Tensions
The economic situation remains volatile, with the escalating tariff war exacerbating existing challenges. Premier Li Qiang assured on Tuesday that China’s policies this year are designed to address various uncertainties, adding that the country remains well-equipped to mitigate external negative influences. However, as the trade war drags on, analysts remain cautious about the long-term impact on both business and consumer confidence.
In the short term, Chinese stocks showed some signs of recovery, buoyed by government pledges of support for local markets and growing interest in domestic tech firms. However, the future remains uncertain as the trade conflict continues to unfold.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/chinas-leaders-plan-emergency-meeting-to-discuss-escalating-u-s-trade-war/