China Shrugs Off Threat of US Tariffs  04/28 06:18

   China's leaders are downplaying the potential impact from U.S. President 
Donald Trump's trade war, saying they have the capacity to protect jobs and 
limit damage from higher tariffs on Chinese exports.

   (AP) -- China's leaders are downplaying the potential impact from U.S. 
President Donald Trump's trade war, saying they have the capacity to protect 
jobs and limit damage from higher tariffs on Chinese exports.

   The briefing Monday by several senior officials of different government 
ministries appeared aimed at shoring up confidence with promises of support for 
companies and the unemployed, easier lending conditions and other policies to 
counter the impact of combined tariffs of up to 145% on U.S. imports from China.

   It followed a meeting of China's powerful Politburo last week that analysts 
said had focused on ways to counter keep growth on track despite slowing 
exports.

   "Chinese policymakers are on heightened standby mode," Louise Loo, lead 
economist at Oxford Economics said in a a report. She noted that the policies 
were similar to earlier pronouncements.

   The status of exchanges, if any, between the White House and Chinese leader 
Xi Jinping remains unclear.

   Trump said last week that he's actively negotiating with the Chinese 
government on tariffs -- while U.S. Treasury Secretary Scott Bessent said talks 
have yet to start.

   Beijing has denied that any such talks were underway, and China has 
retaliated against Trump's tariffs by putting 125% import duties on products 
from the U.S., among other measures.

   The officials who spoke Monday reiterated China's rejection of what leaders 
there call bullying.

   "They make up bargaining chips out of thin air, bully and go back on their 
words, which makes everyone see one thing more and more clearly, that is the 
so-called 'reciprocal tariffs' severely go against historical trends and 
economic laws, impact international trade rules and order and seriously impair 
the legitimate rights and interests of countries," said Zhao Chenxin, deputy 
director of the National Development and Reform Commission, the country's main 
economic planning agency.

   The trade war between the world's two largest economies has the potential to 
bring on a recession in the U.S., with repercussions across the globe. China 
has been struggling to recharge its own growth after the job losses and other 
shocks of the pandemic.

   Economists at the International Monetary Fund and some investment houses 
have downgraded their estimates for growth in China this year, to about 4%. 
Millions of export oriented jobs are at stake.

   Still, Chinese officials say they believe the economy has the momentum to 
expand at the target rate of about 5% this year, in line with growth in 2024.

   Yu Jiadong, a vice minister of Human Resources and Social Security, told 
reporters in Beijing that a full and objective analysis shows China's 
"employment policy toolbox is sufficient."

   The government will step up support for companies to help them keep workers 
and also encourage entrepreneurship among the unemployed, Yu said.

   China also can manage without energy imports from the United States, said 
Zhao, the NDRC deputy director.

   "Enterprises reducing or even stopping energy imports from the United States 
will have no impact on our country's energy supply," he said.

   China has been gradually cutting its imports of U.S. grains and other farm 
products, and Zhao said that stopping such purchases would not compromise the 
food supply. Most grain purchases were for livestock feed and the international 
market has adequate stocks to make up for any reduction in imports of corn, 
sorghum, soy and oil from American suppliers, he said.

   A deputy governor of the central bank, Zou Lan, said the People's Bank of 
China will cut interest rates and relax reserve requirements as needed to 
encourage lending.

   "Incremental policies will be introduced in a timely manner to help 
stabilize employment, enterprises, markets, and expectations," Zou said.

   China can expand domestic demand through various policies including rebates 
for swapping old vehicles, appliances and factory equipment for new ones, Zhao 
said, forecasting that demand for equipment upgrades will exceed 5 trillion 
yuan ($34.8 billion) a year.

   In the longer term, China also is promoting the shift of more people to 
cities from the countryside, Zhao said.

   "Every 1 percentage point increase in the urbanization rate can stimulate 
trillions of investment demand," he said. "Our country has very real potential 
and space to expand domestic demand."