Amid escalating US-China trade tensions and renewed global uncertainty, China’s top policymakers are stepping up efforts to stimulate domestic growth through new monetary and fiscal policy tools, according to a readout from a Politburo meeting released by state-run Xinhua News Agency on Friday.

The Chinese Communist Party’s Politburo signaled that it will cut interest rates and lower banks’ reserve requirement ratios (RRR) in the coming months, part of a broader plan to inject more liquidity into the economy and boost technological innovation, exports, and domestic consumption.

The moves come as U.S. tariffs on Chinese imports intensify pressure on the world’s second-largest economy. In response, Beijing is preparing a suite of monetary easing tools and targeted stimulus to shield vulnerable sectors, particularly those directly impacted by new trade restrictions.

Key Measures Announced:

• Interest rate cuts and lower RRR to increase credit flow.

• New re-lending facilities to support elderly care and services consumption.

• Enhanced unemployment insurance disbursements to firms hit by tariffs, aimed at job retention.

• Planned shantytown renovations to prop up China’s struggling real estate market.

• A commitment to maintaining a stable and active capital market to support investor confidence.

Policymakers also emphasized support for Chinese companies expanding abroad, aligning with Beijing’s goals to strengthen multilateralism and counter unilateral trade pressure.

This latest round of China economic stimulus 2025 is widely seen as an urgent response to the chilling effect of American trade policies and softening global demand. Analysts believe the success of these measures will depend on how swiftly they’re implemented and whether they can effectively offset external shocks.