China is committed to accelerating targeted support for businesses while the United States

Beijing China plans to help companies in difficulty with targeted measures in the face of “increased external shocks”, according to a Reading a meeting Friday by President Xi Jinping.

The Politburo meeting, the second most powerful politician in China, comes while tensions between Washington and Beijing have increased this month with new tatt-tat prices by more than 100%. The main banks of Wall Street have reduced their GDP forecasts in China for the year accordingly, while the country still strives to achieve its high growth objective “around 5%” which takes place in March.

The authorities have called for “multiple measures to help companies in difficulty”, such as financial support, according to reading in Chinese language, translated by CNBC.

Politburo also called for “a timely reduction of interest rates and the ratio of reserve needs that the amount of cash banks must have in hand.

Political decision -makers stick to their position earlier this year, while indicating the flexibility of targeted measures, said Zong Liang, chief researcher of the Bank of China. To alleviate the impact of prices, he expects China to do more research on specific companies and reflect on how to support them.

In a rare decision, China has increased its deficit target to 4% of GDP. The Minister of Finance, Lan Fo'an, said at the time that China had more room to act on fiscal policy.

Since the climbing of American trade tensions this month, local Chinese governments and large companies have announced efforts to help exporters redirect their products to the internal market for sale.

Reading the Politburo meeting underlined the need to increase the income of low -income income groups and stimulate the consumption of services. Managers have also called for additional technological development, including the integration of artificial intelligence.

“The press release shows that the government is ready to launch new policies when the economy is affected by the external shock,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset, in a note.

“It seems that Beijing is not in a hurry to launch a large stimulus at this stage,” he said. “It takes time to monitor and assess the moment and size of the commercial shock.”

The CSI 300 has briefly dropped and the Hang Kong Hang Seng index reduced the gains after the publication of the Reunion Declaration.

The politically Chinese, made up of high -level members of the Chinese Communist Party in power, tends to define large political directives.

The last meeting reaffirmed the policies of the Council of State the first executive body and the government ministries, “highlighting the commitment and high -level collaboration,” said Bruce Pang, assistant professor at the Cuhk Business School.

“Although they cannot offer many unexpected and unexpected surprises, these measures give political decision-makers tools to navigate external uncertainties,” he said, adding that he expects a next law in the private sector to further improve the commercial environment.

The Standing Committee of the Chinese Parliament, the National People's Congress, is expected to meet from Sunday to Wednesday and examine a new law to support the private sector.