In response to the global economic slowdown, Chinese Premier Li Qiang has sharply criticized higher tariffs on Chinese exports, arguing that they undermine global economic growth. This comes as China’s leadership commits to easing monetary policies to provide more support to the nation’s ailing economy.
China Shifts Policy to Boost Economy Amid Slower Growth
Following a meeting by the Communist Party’s Politburo, shares in Hong Kong surged after a report revealed plans to adopt “moderately loose” monetary policies. This marks a shift from the more “prudent” stance China has held for the past 14 years. Market analysts saw this change as a strategic move to counter the impact of higher tariffs and to provide relief to China’s economic challenges. Stephen Innes of SPI Asset Management noted that the recalibrated policy aims to cushion anticipated economic shocks.
In recent months, China’s central bank and other regulators have introduced measures to encourage both businesses and consumers to spend more. The Politburo’s meeting reaffirmed the commitment to fiscal stimulus, echoing strategies from the 2008 global financial crisis. Plans include increased government spending and more accessible credit to stimulate consumption.
With consumer spending still sluggish and the housing market struggling, China’s government has emphasized the need to stabilize employment and improve public confidence. Premier Li’s remarks also addressed international trade tensions, with a veiled criticism of countries that impose high tariffs and other trade barriers. Li suggested that such protectionist measures are exacerbating global economic uncertainties.