According to Bloomberg News, China’s policymakers are considering stimulus measures to stabilize the economy in response to US tariffs, focusing on boosting consumption and exports. They’re also exploring a stock market stabilization fund. While details are still being finalized, more decisive measures, potentially worth up to $274 billion, may be introduced. In retaliation for US tariffs, China has imposed its own tariffs and restricted rare earth exports. They write:
China’s policymakers discussed measures over the weekend to stabilize the economy and the markets in the face of US President Donald Trump’s tariff onslaught, including whether to accelerate plans to unleash stimulus to bolster consumption, according to people familiar with the matter. […]
The discussions come as Beijing is bracing for widening fallout of a spiraling trade conflict between the world’s two largest economies. On Friday, President Xi Jinping’s government announced it will impose a 34% tariff on all imports from the US starting April 10, matching the level of Trump’s reciprocal tariffs on Chinese products. Authorities in Beijing also announced several other countermeasures, including immediately restricting exports of seven types of rare earths. […]
China has also taken steps to limit local companies’ investments in the U.S., as previously reported by Bloomberg, a move that could provide Beijing with additional leverage in any potential trade negotiations with the Trump administration.
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