China’s Premier, Li Qiang, has taken aim at the growing threat of high tariffs on Chinese exports, claiming they hinder global economic growth. At the same time, he outlined new policies aimed at boosting China’s economy, which has faced significant challenges in recent months.

Looser Monetary Policies Announced to Support Economic Growth

In a meeting of China’s Politburo, the government announced a shift in its monetary policies, moving from “prudent” to “moderately loose” measures in an effort to provide economic relief. The news sparked a significant rally in Hong Kong’s stock market, with the Hang Seng index rising by 2.8%.

The new fiscal policies aim to encourage consumer spending and investment. As China’s economy struggles to meet its 5% annual growth target, Premier Li emphasized the importance of fostering confidence among the public and improving job stability. He also warned against the harmful effects of rising tariffs and protectionist policies, suggesting they only add to the uncertainty plaguing the global economy.