China Promises More Support for Businesses Amid Growing US Trade Tensions
On Friday, China’s leaders promised increased support for companies suffering from a worsening trade war with the United States.
According to an official summary, the pledge came in a Politburo meeting led by President Xi Jinping. The 24-member body said businesses facing “increased external shocks” would receive multiple forms of support, including easier credit and faster tax rebates.
The assurance follows Washington and Beijing’s new tariffs of more than 100% this month, a move that has pushed several Wall Street banks to lower their forecasts for China’s 2025 growth. Beijing is still chasing the “around 5%” target it set in March.
The Chinese readout reported by CNBC said the People’s Bank of China should cut interest rates and the reserve requirement ratio for lenders when needed.
Zong Liang, the Bank of China’s chief researcher, said policymakers are maintaining the stance set earlier this year while showing room for targeted moves. He expects officials to study which exporters suffer most from tariffs.
Beijing signaled targeted policy support
Beijing already expanded its deficit target to 4% of gross domestic product in March. Finance Minister Lan Fo’an then said spending could be increased.
Since the latest tariff escalation, provincial governments and large firms have begun steering export goods toward the domestic market.
The Politburo urged broader efforts to lift the earnings of middle and lower-income households and spur spending on services while pressing ahead with artificial intelligence projects.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote that the press release shows the government is ready to launch new policies while the economy is affected by the external shock.
“It seems Beijing is not in a rush to launch a large stimulus at this stage,” he said.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
