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China announced a barrage of measures meant to counter the blow to its economy from the US trade war, as the two sides prepared for talks later this week.
Beijing’s central bank governor and other top financial officials outlined plans Wednesday to cut interest rates and reduce bank reserve requirements to help free up more funding for lending. They also said the government would increase the amount of money available for factory upgrades and other innovation and for elder care and other service businesses.
Trump’s tariffs, set as high as 145 per cent on imports from China, have begun to take a toll on its export-dependent economy at a time when it’s already under pressure from a prolonged downturn in the property sector. China has retaliated with tariff hikes of up to 125 per cent on US goods and stopped buying most American farm products.
Late Tuesday, China and the United States announced plans for talks between US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng later this week in Geneva, Switzerland.
The agreement to talk comes at a time when both sides have remained adamant, at least in public, about not compromising on the tariffs.