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China Prepares for US Trade War with Emergency Plans, Targets 5% Growth Amid 145% and 125% Tariffs

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Updated Apr 25, 2025, 12:41 PM

China has vowed to fully prepare emergency plans for external shocks amid escalating trade tensions with the United States. The Chinese leadership, including President Xi Jinping's Politburo, has emphasized the need to coordinate domestic economic efforts with international trade challenges, signaling a readiness to handle an 'extreme scenario' in the ongoing trade war.

In response to President Donald Trump's imposition of 145% tariffs on Chinese goods, Beijing has declared it will not engage in further talks until the U.S. removes all unilateral tariffs. China has responded with 125% tariffs on U.S. goods. The Politburo has committed to rolling out specific plans to support companies and individuals affected by the trade war, focusing on stabilizing employment, businesses, markets, and expectations, and steadfastly expanding high-level opening-up.

To counteract the economic pressures, the People's Bank of China (PBOC) has announced a moderately loose monetary policy. This includes timely cuts to the reserve requirement ratio (RRR) and interest rates, aimed at promoting the development of the Chinese economy and increasing the incomes of middle- and low-income groups.

Amid the trade war, China's top leaders have pledged to step up economic support and oppose 'unilateral bullying' in global trade, indicating a readiness to launch new policies to mitigate the impact of external shocks. Beijing is targeting an annual growth of 5% this year.

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#China's top leaders pledge #Economic support as #TradeWar2025 rages — #TrumpTariffs https://t.co/BSZyY0Z2IA

Mario Nawfal

@MarioNawfal

🇨🇳🇺🇸CHINA PREPS FOR “EXTERNAL SHOCKS” AS TRADE WAR ESCALATES Xi’s Politburo is scrambling emergency plans and new monetary tools as Trump’s 145% tariffs slam the world’s number 2 economy. Beijing says it's done talking until the U.S ditches all unilateral tariffs - and it's not https://t.co/LCJSitlqNI https://t.co/MhpDMuo9ne