China Stands Firm Amid Trade Tensions: Support for Firms Hit by Tariffs

China's leaders pledge support for businesses affected by U.S. tariffs and advocate measures to stabilize employment and economy. Politburo announces plans for increased debt issuance, relaxed monetary policies, and return of unemployment insurance funds. U.S.-China trade tension persists despite conciliatory signals from Washington.

China's top policymakers have committed to aid companies and employees impacted by hefty U.S. tariffs, reaffirmed the Communist Party's Politburo on Friday, as reported by state media.

The Politburo, responsible for key policy decisions, has reiterated its commitment to hasten debt issuance and ease monetary policy. The body has promised to back employers to secure jobs, aiming to maintain domestic stability as China braces for an extended trade war with the United States. According to a state media Xinhua report on the Politburo's Friday session, "The essentials of China's continued economic recovery require further strengthening, as external shocks escalate."

To counter uncertainties from fast-changing external factors, the meeting underlined stabilizing employment, enterprises, markets, and expectations through high-quality development. Xinhua reported, "Preparing for worst-case scenarios with detailed planning and executing efficient economic strategies is vital." Specific measures include increasing the allocation of unemployment insurance refunded to companies adversely impacted by tariffs to stabilize jobs. Moreover, China plans to cut interest rates and banks' reserve requirements "as needed" while boosting the services sector's consumption.

(With inputs from agencies.)