THE DIARY OF THE PEOPLEChina’s main newspaper, said on Monday that the country’s policy formulators are prepared to deal with US tariffs with tools that include monetary and fiscal flexibility.
According to the publication, the Chinese Central Bank (PBOC) will be able to cut interest rates at any time, if necessary, and China has room to make the budget deficit increase.
Beijing will make “extraordinary efforts” to boost domestic consumption and take concrete measures to stabilize markets, the DIARY OF THE PEOPLE. The Shanghai Stock Exchange fell more than 6% in the morning negotiations of this Monday, while Hong Kong’s Hang Seng Index had its biggest decrease since 1997.
China’s Ministry of Commerce reported in a statement that it organized a meeting with US companies representatives on Sunday (6). Tesla executives, GE Healthcare and Medronic, among others, attended the meeting, according to the statement.
The folder also said the Chinese government will continue to support foreign companies in the country, even those in the United States, and that China remains a “safe and ideal place for foreign investment.”
The Ministry of Commerce has reiterated that China “opposes firmly” to the 34% import tariff on Chinese products imposed last week by the United States. On Friday, 4, the Asian country government announced that it would charge the same tax rate on US items.