Top Chinese leaders will convene an urgent high-level meeting as early as Wednesday to craft a response to the U.S.'s escalated trade war, according to sources familiar with the matter. The gathering—the first since President Trump announced "reciprocal" tariffs last week—aims to stabilize markets and counter economic fallout from the 104% duties now imposed on Chinese goods.
Key Attendees & Agenda
- Who's Involved: Senior officials from the State Council, People's Bank of China (PBOC), Ministry of Finance, and financial regulators (CSRC, NFRA) will attend.
- Focus Areas:Stimulating domestic consumption to offset export losses.Capital market stabilization (e.g., stock market support measures).Export tax rebates to aid manufacturers.
- Timeline: Some policies could roll out within weeks, per sources.
Why Now?
- Trade War Escalation: Trump's tariffs—part of a broader global assault on trade—have rattled Beijing, which retaliated last week with 34% duties on U.S. goods.
- Economic Weakness: China's economy is already struggling with a property crisis, local debt burdens, and weak confidence. State media will likely broadcast parts of the meeting to reassure markets.
- Market Turmoil: While Chinese stocks briefly steadied Wednesday on state support pledges, analysts warn the tech sector and exporters face long-term pressure.
Broader Implications
- Global Recession Fears: The tariffs have intensified warnings of a worldwide downturn, with Germany and others already slashing growth forecasts.
- China's Defiance: Premier Li Qiang insisted Beijing can "hedge against external shocks", but the meeting signals urgency.
- U.S. Pressure: Trump's tariffs target not just China but third countries assembling Chinese goods, boxing Beijing into a corner.
Quote of Note:
"China views this as economic blackmail. The question is whether stimulus can offset the damage." — Trade analyst, unnamed