China’s top leaders on Friday committed to bolstering support for the economy while opposing “unilateral bullying” in global trade, seen as a subtle critique of the hefty tariffs recently introduced by U.S. President Donald Trump.
The world’s two largest economies are engaged in a high-stakes tit-for-tat trade war that has spooked markets and spurred major manufacturers to reconsider supply chains.
During a gathering of the Chinese Communist Party’s top decision-making body focused on economic work and attended by President Xi Jinping, leaders acknowledged that “the impact of external shocks is increasing,” state news agency Xinhua reported.
They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices,” said Xinhua.
The brutal trade war comes as China’s economy strains under the weight of longstanding woes in the property sector and the reluctance of consumers to pull out their wallets.
China’s top policymakers on Friday pledged to support firms and workers most affected by the impact of U.S. tariffs and urged the country to prepare for worst-case scenarios.
The Politburo meeting reiterated plans to accelerate debt issuance, ease monetary policy and vowed to support employers to safeguard jobs.
The meeting saw leaders discuss a range of domestic economic issues, emphasising the need to “enhance the role of consumption in stimulating economic growth,” according to Xinhua.
They also called for action to increase incomes and “vigorously develop service consumption” as well as the implementation of key rate cuts at “appropriate times.”
Economists say the Chinese economy will need to depend more on domestic consumption to sustain growth throughout the coming years.
Beijing is targeting an annual growth of 5% this year, though experts consider that goal to be ambitious.
The economy grew 5.4% in the first quarter, beating expectations, but markets fear a sharp downturn in the year ahead as U.S. tariffs pose the biggest risk to the world’s second-largest economy in decades.
The International Monetary Fund (IMF) downgraded its forecast for China’s economic growth to 4% this year and next, down 0.6 percentage points and 0.5 points, respectively, from its January outlook.
Last year saw China achieve record exports, providing a key source of economic activity as domestic challenges in the property sector and deflationary pressure persisted.
Since returning to the White House in January, Trump has slapped most trading partners with 10% tariffs.
But China has received the worst of the blitz, with many products from the country now facing a 145% tariff. Beijing has responded with new 125% tariffs of its own on U.S. goods.
Friday’s Politburo meeting “shows the government is ready to launch new policies when the economy is affected by the external shock,” Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management, wrote in a note.
However, Zhang noted “it seems Beijing is not in a rush to launch a large stimulus at this stage.”
“It takes time to monitor and evaluate the timing and the size of the trade shock,” he added.
Recent days have seen competing claims about potential trade talks that could see an easing of the sky-high tariffs that have unleashed chaos on the global economy.
Trump and Treasury Secretary Scott Bessent struck a more conciliatory tone this week, saying the tariffs were unsustainable and signaling openness to de-escalating the trade war.
Beijing called on Washington to remove the tariffs to create space for talks while also granting some exemptions on U.S. imports from its counter-tariffs.
A spokesperson for Beijing’s Commerce Ministry said Thursday that “there are currently no economic and trade negotiations between China and the United States.”
But hours later, asked about the state of negotiations with Beijing, Trump maintained: “We’ve been meeting with China.”
Chinese President Xi Jinping has toured Southeast Asia, and other officials have intensified diplomatic outreach to unite countries against Trump’s tariff offensive. Beijing has also threatened retaliation against capitals siding with Washington.
