China's authorities are ready to take urgent measures to cushion negative impacts from the introduction of US tariffs. According to Reuters, China’s Ministry of Commerce has announced a series of preventive steps aimed at supporting the country’s foreign trade. These measures include increasing financial support for certain companies and expanding the export of agricultural products.
Amid threats from US President-elect Donald Trump, who has promised to impose 60% tariffs on all Chinese imports, the Chinese government is taking precautionary actions. Such statements from Washington have alarmed Chinese manufacturers. In response, some factories have been rapidly relocated to Southeast Asia and other regions. Exporters from the world’s second-largest economy brace themselves for any potential trade disruptions, with support from the Ministry of Commerce. The government will help companies respond promptly to unreasonable trade restrictions from other countries. China will strive to create a favorable external environment for exports, the ministry emphasized.
Experts note that foreign trade is a key component of China’s economy. However, investors are discouraged by subdued domestic demand and a downturn in China’s real estate market that has been going on over the past few months.
The ministry pointed out that China’s government aim to prop up financial institutions and assist them in managing currency risks to ensure the yuan remains "reasonably stable". Analysts warn that the anticipated 40% tariffs on Chinese imports, expected in early 2025, could reduce China’s economic growth by 1%.
In this context, China also plans to expand its agricultural exports and support the import of essential equipment and energy products. Additionally, the country is prepared to facilitate cross-border talent exchanges. The Chinese authorities will back the business personnel of key trading partners traveling to the country, as stated by the Ministry of Commerce.