China leaders meet to address Trump tariffs
Make us a preferred source
Make us a preferred source on Google
The news: Key Chinese leaders are gathering in Beijing to discuss additional economic stimulus after US President Donald Trump pushed up tariffs on the country on Wednesday.
The numbers: Trump raised duties on the nation to 125% effective immediately, while also announcing a 90-day pause on reciprocal tariffs for most trade partners (excluding China) and lowering the reciprocal tariff rate during this period to 10%.
The context: Trump made the announcement after China hit the US with additional tariffs earlier on Wednesday, saying that it would not back down and criticising the US for increasing global instability.
According to sources cited by Bloomberg, the ad-hoc meeting will be centred on housing, consumer spending, and technological innovation. Other government bodies including financial regulators are also meeting to assess how to boost the economy and stabilise markets.
Beijing has been increasingly active in its approach to increase support for financial markets. Policymakers discussed accelerating stimulus measures to strengthen consumption over the weekend, as well as bringing forward other measures that had been in the works since before the tariff-war took hold. Earlier this week, traders were pricing in faster easing in China amid escalating trade tensions with the US.
Chinese stocks performed well on Thursday, with the Hang Seng China Enterprise Index closing up 1.8%, capping a three day climb, suggesting that investors are confident that Beijing will support the economy and markets in the face of the escalating trade war.
The sources: Bloomberg, Capital Brief
