China Boosts Economic Measures to Navigate Trade Challenges

April 28, 2025 03:20 PM AEST | By Team Kalkine Media

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China Boosts Economic Measures to Navigate Trade Challenges — Image source: Shutterstock

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Highlights

China strengthens plans to support economy and jobs.

Authorities stay confident on 2025 growth target.

Fresh steps to aid exporters and stabilize employment.

Chinese officials have renewed their commitment to reinforcing economic growth and supporting employment as the ongoing trade tensions with the United States continue without a clear resolution.

At a recent briefing, Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC), emphasized the government’s proactive approach. He highlighted that authorities are ready with contingency plans and a wide range of policy tools aimed at stabilizing the economy and preserving job security. This reassurance comes amid pressures from prolonged trade frictions, which have raised concerns about the country’s economic momentum.

Despite the external challenges, Chinese policymakers remain optimistic. Zhao reiterated their confidence in achieving the country's economic expansion target of approximately 5% for 2025. This message aligns with the Politburo’s recent calls, under the leadership of President Xi Jinping, to brace for external shocks and ensure steady progress.

Adding further perspective, Yu Jiadong, vice minister of human resources and social security, acknowledged the negative impact that increased US tariffs have had on exporters and the broader employment landscape. Some exporters are navigating difficult business conditions, and certain employment sectors are feeling the pressure. In response, the government plans initiatives to enhance workforce skills, with particular attention to improving youth employment opportunities.

Financial support measures are also on the horizon. Zou Lan, deputy governor of the People's Bank of China (PBOC), confirmed that liquidity injections for banks and potential interest rate reductions are being prepared for appropriate moments. The central bank will also guide lenders to maintain credit flow towards exporters facing difficulties, ensuring a buffer for affected sectors.

Companies heavily exposed to global trade, such as Alibaba Group Holding Limited (NYSE:BABA) and JD.com, Inc. (NASDAQ:JD), are closely watched in the market as they navigate these changing dynamics. Meanwhile, financial institutions like Industrial and Commercial Bank of China Limited (OTC:IDCBY) are expected to play a crucial role in facilitating liquidity support across industries.

China's commitment to steadying its economy highlights a determined approach to overcoming headwinds, ensuring the workforce and businesses can adapt and thrive amid global uncertainty.

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