China pledged to intensify the targeted support of companies with US trade war strikes

BEIJING – China plans to help companies struggle with targeted measures in the face of “increasing external shocks”, according to Reading a meeting On Friday’s presidency Xi Jinping.

The Political Bureau meeting comes the second most powerful political body in China, with tensions between Washington and Beijing this month with a new tariff compared to more than 100 %. Major Wall Street Banks reduced the forecast of GDP in China for this year as a result, while the country is still striving to achieve its noble goal of growth “about 5 %” in March.

The authorities called for “multiple measures to help companies in difficulty”, such as financial support, according to Chinese language readings, translated by CNBC.

The Political Bureau also called for a “timely reduction” for interest rates and the rate of reserve requirements – the amount of cash banks that must be at hand.

Zong Liang, chief researcher at the Bank of China, said that politicians have committed to their position since earlier this year, with a reference to the flexibility in the targeted measures. To alleviate the impact of definitions, China is expected to do more research on specific works, and consider how to support them.

In a rare step, in March, China raised its deficiency to 4 % of GDP. The Minister of Finance indicated that Furan at that time China had more space to work in fiscal policy.

Since the escalation of commercial tensions in the United States this month, Chinese governments and major companies have announced their efforts to help exporters to redirect their products to the local market for sale.

Readings of the political meeting emphasized the need to increase the income of medium groups and low income, and enhance the consumption of services. The leaders also called for more technological development, including integrating artificial intelligence.

“The press statement shows that the government is ready to launch new policies when the economy is affected by external shock,” said Zeoy Zhang, president and chief economist at Pinpoint Asset Management in a note.

“It seems that Beijing is not in a hurry to launch a great incentive at this stage,” he said. “It takes some time to monitor, evaluate the timing and size of commercial shock.”