China vows in politburo meeting to support firms, workers affected by U. S. tariffs

China’s leaders have promised to support companies and workers most affected by the impact of high U.S. tariffs, the ruling Communist Party’s politburo stated on Friday (April 25, 2025), as reported by state media.

The politburo, a key decision-making body, reiterated plans to speed up debt issuance, loosen monetary policy, and ensure support for employers to protect jobs, all in an effort to maintain stability as China braces for an extended trade war with the United States.

“The foundation of China’s ongoing economic recovery needs to be strengthened further, as the effects of external shocks are increasing,” stated a report by state media Xinhua on the politburo meeting held on Friday (April 25, 2025).

“We will work towards stabilizing employment, businesses, markets, and expectations, and address the uncertainty of rapid changes in the external environment with the certainty of high-quality development.”

The meeting emphasized the need to prepare for “worst-case scenarios” with thorough planning, and to take concrete actions to excel in economic endeavors, as per Xinhua.

In particular, the country will increase the amount of unemployment insurance funds that can be reimbursed to heavily impacted companies due to tariffs, in order to stabilize employment, as per the report.

“Various measures should be implemented to assist struggling enterprises. [We should] enhance financing support and expedite the fusion of domestic sales and foreign trade,” Xinhua reported.

Additionally, the nation will lower interest rates and banks’ reserve requirement ratio “promptly,” and promote consumption in the services sector, according to the report.

In the first quarter, China’s economy expanded by 5.4%, surpassing expectations. However, concerns linger about a sharp downturn in the coming year as U.S. tariffs pose significant risks to the world’s second-largest economy.

U.S. President Donald Trump and Treasury Secretary Scott Bessent struck a more conciliatory tone this week, acknowledging that the tariffs were unsustainable and showing willingness to reduce tensions in the trade war. Nonetheless, Beijing urged Washington to eliminate the tariffs to pave the way for negotiations.