China to Hold Meeting Over Trade Dispute with the US

Amid escalating tensions in trade relations with the US, China’s leadership plans to hold an important meeting on Wednesday. The purpose of the event is to discuss possible measures to stimulate the economy and support stability in financial markets.

This is reported by AgroReview

Economists predict that the consequences of the trade war could significantly slow down the growth of the world’s second-largest economy by one to two percentage points this year. This may lead to an increase in excess capacity, job losses, and heightened deflation.

Participation of Senior Officials

The meeting is expected to be attended by senior officials from several government and regulatory bodies, including the People’s Bank of China, the Ministry of Finance, and the Ministry of Commerce. Participation from representatives of the National Financial Regulatory Administration and the China Securities Regulatory Commission is also likely.

Policymakers will discuss measures aimed at increasing domestic consumption and supporting capital markets in the country.

Impact of the Trade War

The escalation of the trade dispute with the US occurs against the backdrop of a prolonged crisis in the real estate market and high debt levels among local authorities, which negatively affects business and consumer confidence. Beijing, although it has imposed corresponding tariffs on American goods, demonstrates a willingness to withstand pressure, striving to maintain economic stability.

“China is not seeking conflicts,” said the spokesperson for the Chinese Foreign Ministry, Lin Jian, in response to the US imposing a 104% tariff on imports.

According to the latest data, the US has imposed a base tariff of 10% on all imports, resulting in an additional 34% tariff on Chinese goods. In response, Beijing has also announced the introduction of new tariffs.