Beijing Fires Back: Strategic Countermeasures Deployed Against US Tariff Onslaught

China’s latest economic chess move—targeted sector support—just flipped the US tariff playbook on its head. No blanket bailouts here; just surgical strikes to keep export engines humming.

Behind the scenes: State-backed liquidity injections, tax breaks for key industries, and accelerated supply chain reshuffling. Classic ’kill them with efficiency’ tactics.

Wall Street analysts already downgrading the impact—because nothing boosts markets like a good old-fashioned trade war. Except maybe another Fed pivot.

Beijing signaled targeted policy support

Beijing already expanded its deficit target to 4% of gross domestic product in March. Finance Minister Lan Fo’an then said spending could be increased.

Since the latest tariff escalation, provincial governments and large firms have begun steering export goods toward the domestic market.

The Politburo urged broader efforts to lift the earnings of middle and lower-income households and spur spending on services while pressing ahead with artificial intelligence projects.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote that the press release shows the government is ready to launch new policies while the economy is affected by the external shock.

“It seems Beijing is not in a rush to launch a large stimulus at this stage,” he said.

Asian markets reacted modestly

The CSI 300 index briefly dipped, and Hong Kong’s Hang Seng trimmed gains soon after the statement appeared.

Friday’s statement echoed directions already issued by the State Council and ministries, said Bruce Pang, adjunct associate professor at CUHK Business School, adding that an upcoming law aimed at the private sector should improve the climate for entrepreneurs.

China’s parliament, the National People’s Congress Standing Committee, meets from Sunday through Wednesday and is due to review that draft legislation.

Businesses will watch for concrete measures behind Friday’s promises, even as the tariff standoff shows no sign of easing. Observers do not expect a breakthrough in talks any time soon.

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