Richard Parks Chinese Premier Li Qiang has criticized rising tariffs on Chinese exports, arguing they hinder global economic growth. At the same time, he unveiled plans to loosen China’s monetary policy to support the country’s slowing economy.
China Shifts to Looser Policies to Combat Economic Slowdown
After a key meeting of the Communist Party’s Politburo, Chinese officials announced a shift to “moderately loose” monetary policies, a significant change from the more cautious approach taken over the past 14 years. This policy adjustment was welcomed by markets, with Hong Kong shares climbing 2.8%. Analysts view this as a response to economic pressures, including the adverse impact of tariffs on China’s global competitiveness.
The central bank and other regulatory bodies have already rolled out several measures designed to encourage spending by businesses and consumers. In the Politburo’s latest meeting, there was a renewed focus on fiscal stimulus, with promises of increased government spending and easier credit to drive consumption.
While the Chinese economy has been growing slower than anticipated, with consumer spending still weak and the housing market sluggish, Premier Li emphasized the importance of stabilizing employment and boosting public confidence. In a pointed comment, he also criticized the rise in global protectionist measures, highlighting the negative impact of tariffs on global economic stability.