Overview
- China's Politburo, led by Xi Jinping, has instructed government agencies to prepare for worst-case scenarios in the ongoing tariff conflict with the United States.
- Leadership plans include implementing loose monetary policies, timely interest-rate cuts, and targeted support for firms impacted by tariffs to stabilize growth and employment.
- Beijing has temporarily lifted surcharges on certain US-imported semiconductors, signaling a tactical adjustment while maintaining export controls on critical raw materials.
- Efforts to boost domestic consumption focus on increasing incomes for lower- and middle-income households to drive internal demand and economic recovery.
- The US-China trade dispute remains contentious, with both sides issuing contradictory statements about negotiations, while global markets experience continued volatility.