How China Plans to Safeguard Jobs Amid U.S. Tariff Threats: Strategies for Economic Resilience

China’s leadership is minimizing concerns about the impacts of the U.S. trade war initiated by former President Donald Trump. They claim they have the capability to protect jobs and mitigate the repercussions of increased tariffs on their exports.

During a recent briefing, senior officials from various ministries outlined their strategies to support companies and safeguard employment. They promised easier lending and various policy adjustments to counterbalance tariffs that could reach as high as 145% on U.S. imports from China.

This discussion followed a meeting of China’s Politburo, which aimed to find ways to maintain economic growth despite a slowdown in exports. Louise Loo, an economist at Oxford Economics, indicated that Chinese policymakers are on alert, echoing similar sentiments from past communications.

Meanwhile, the nature of negotiations between the U.S. and China remains uncertain. Trump mentioned ongoing discussions about tariffs, while U.S. Treasury Secretary Scott Bessent stated that talks have yet to commence. China, for its part, has denied that any discussions are underway and has responded with its own set of tariffs, imposing 125% duties on U.S. products.

Chinese officials reject what they term as bullying tactics from the U.S. Zhao Chenxin, deputy director of the National Development and Reform Commission, criticized what he perceives as U.S. tactics that violate international trade principles.

The ongoing trade conflict could lead to a U.S. recession, causing a ripple effect worldwide. China’s economy is grappling with impact from the pandemic, leading to revised growth forecasts by the International Monetary Fund, now estimating about 4% this year. This downturn jeopardizes millions of export-oriented jobs.

Despite these challenges, Chinese leaders are confident that the economy can still achieve its target growth rate of around 5%. Yu Jiadong, vice minister of Human Resources and Social Security, expressed optimism about the government’s employment strategies and the sufficiency of their support measures for businesses and the unemployed.

China asserts that it can manage without U.S. energy imports. Zhao noted that any reduction in energy imports would not impede the country’s energy supply. Additionally, China has been reducing its purchases of U.S. agricultural products, assuring that alternative sources are available to meet domestic needs.

The People’s Bank of China is prepared to lower interest rates and relax lending requirements to further assist businesses. Zou Lan, a deputy governor, emphasized that timely policies will be enacted to stabilize employment and market expectations.

To boost domestic demand, China is implementing new policies, including incentives for upgrading old vehicles and equipment. Zhao predicts that demand for such upgrades could exceed 5 trillion yuan (approximately $34.8 billion) each year. Furthermore, the country is encouraging urbanization, which Zhao pointed out could significantly stimulate investment across various sectors.

Overall, while the trade war poses significant challenges, China is exploring multiple avenues to sustain its economic momentum and safeguard employment.

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Donald Trump, International trade, Scott Bessent, China, United States government, General news, Tariffs and global trade, United States, Politics, China government, Government policy, Business, Washington news, Beijing, Xi Jinping, World news, Louise Loo, World News, Washington News