China Signals Preparedness & Resolve Amid Trump's Tariffs - PD Commentary: 'The Sky Will Not Fall'
It’s been quite an eventful weekend. First, there was the news of Beijing’s retaliation to the “reciprocal tariffs” imposed by the Donald Trump administration in the US.
The Chinese response has been multifaceted. It includes:
Imposing an additional 34 percent tariff on all imports from the US, starting April 10th.
Filing a suit under the WTO mechanism.
Listing 11 American companies on the unreliable entities list
Placing 16 American firms on its export control list
Announcing an anti-dumping probe into certain imports of medical CT tubes originating from the US and India, as well as a separate industrial competitiveness investigation into broader imports of medical CT tubes
Announcing export control measures on certain items related to 7 types of medium and heavy rare earths
Suspending the qualification of C&D (USA) Inc. to export sorghum to China, and suspending the qualifications of three other US firms, namely American Proteins, Inc., Mountaire Farms of Delaware, Inc. and Darling Ingredients Inc., to export poultry meat and bone meal to China
Launching a probe into DuPont China Holding Co., Ltd. over the firm’s suspected violation of China’s anti-monopoly law
If you are interested in the official announcements for each of these actions, do check out Fred Gao’s Inside China newsletter.
On Saturday, the Chinese government put out an official statement responding to the American tariff policy. It says:
“Recently, the United States has imposed tariffs on all its trading partners, including China, under various pretexts. This severely infringes upon the legitimate rights and interests of all countries, severely violates World Trade Organization (WTO) rules, severely undermines the rules-based multilateral trading system, and severely disrupts the global economic order. The Chinese government strongly condemns and resolutely opposes such move.
“By taking such action, the United States defies the fundamental laws of economics and market principles, disregards the balanced outcomes achieved through multilateral trade negotiations, ignores the fact that the U.S. has long benefited substantially from international trade, and weaponizes tariffs to exert maximum pressure for selfish interests. This is a typical act of unilateralism, protectionism and economic bullying. Under the guise of ‘reciprocity’ and ‘fairness’, the United States is playing a zero-sum game to pursue in essence ‘America First’ and ‘American exceptionalism.’ It attempts to exploit tariffs to subvert the existing international economic and trade order, put U.S. interests above the common good of the international community, and advance U.S. hegemonic ambitions at the cost of the legitimate interests of all countries. Such action will inevitably face widespread opposition from the international community.
China is an ancient civilization and a land of propriety and righteousness. The Chinese people value sincerity and good faith. We do not provoke trouble, nor are we intimidated by it. Pressuring and threatening are not the right way in dealing with China. China has taken and will continue to take resolute measures to safeguard its sovereignty, security, and development interests. China-U.S. economic relations should be mutually beneficial and win-win in nature. The United States should go along with the shared aspiration of the peoples of the two countries and the world, and, minding the fundamental interests of the two countries, stop using tariffs as a weapon to suppress China economically and stop undermining the legitimate development rights of the Chinese people.
As the second largest economy and second largest market for consumer goods, China is committed to opening ever wider to the world, no matter how the international situation changes. We will continue to advance high-standard opening up. We will steadily expand institutional opening up in rules, regulations, management, and standards. We will implement high-standard policies for trade and investment liberalization and facilitation. We will foster a first-class market-oriented, law-based, and internationalized business environment. And we will share our development opportunities with the world to achieve mutual benefits. Economic globalization is the only way to human progress. The WTO-centered, rules-based multilateral trading system has been critical in promoting global trade, economic growth and sustainable development. Openness and cooperation are a historical trend. The world will not, and should not, return to mutual isolation or fragmentation.
The whole world aspires for win-win cooperation. Economic bullying that shifts risks onto others will ultimately backfire. Making economic globalization more open, inclusive, balanced and beneficial to all is a shared responsibility of the international community. Development is an inalienable right of all countries, not the exclusive privilege of a few. International affairs should be addressed through consultation, and the future of the world should be decided by all countries. There are no winners in trade or tariff wars. Protectionism is a dead end. All countries should uphold the principles of extensive consultation, joint contribution and shared benefit. They should practice true multilateralism, jointly oppose all forms of unilateralism and protectionism, and defend the U.N.-centered international system and the WTO-centered multilateral trading system. We are confident that the vast majority of countries, committed to fairness and justice, will stand on the right side of history and act in their best interests. The world must embrace fairness and reject hegemonism!”
Today on the front page of the People’s Daily, there’s a Xinhua article adding to the Chinese view on American tariffs.
On April 2, the United States publicly announced the implementation of the so-called ‘reciprocal tariff’ plan, provoking a global trade war, triggering a strong reaction from the international community, with financial markets around the world including the US experiencing significant fluctuations. China firmly implemented necessary countermeasures immediately, joining the international community in jointly opposing the US tariff bullying and hegemony, and resolutely defending multilateralism and economic globalisation. 4月2日，美国对外宣布实施所谓“对等关税”计划，挑起全球范围贸易战，引发国际社会强烈反应，包括美国在内的全球金融市场大幅震荡。中国在第一时间坚决实施必要的反制措施，与国际社会一道共同反对美国关税霸凌霸道行为，坚决捍卫多边主义和经济全球化.
The logic of the so-called ‘reciprocal tariff’ policy of the US is confusing and violates basic economic laws. The calculation of the US tax rate is simple and crude. The so-called ‘reciprocal tariff’ rates it determines for various countries (or regions) are not, as the US claims, calculated based on ‘that country’s (or region’s) tariff rate on the US + non-tariff barriers’, but rather by simply taking the ratio of the US trade deficit with that country (or region) to that country’s (or region’s) exports to the US as an important basis for setting the so-called ‘reciprocal tariff’ rate. Then, by halving that ratio, it is used as the tariff rate to be imposed. The calculation method is excessively arbitrary and lacks reasonable and legitimate grounds. The US’ intention to achieve ‘zero trade deficit’ is not feasible. The essence behind the huge trade deficit of the United States is the imbalance of the US domestic economy. From the perspective of national economic accounting, whether a country’s current account is in surplus or deficit depends on the relationship between the country’s savings and investment. The typical characteristics of the US economy are low savings and high consumption. Savings have long been lower than investment. Therefore, it has had to extensively rely on foreign savings through trade deficits. This is the fundamental reason for the formation and long-term existence of the US trade deficit — an endogenous, structural, and persistent phenomenon of the US economy. Protectionism is unlikely to bring the US manufacturing industry back to life, and imposing tariffs will not achieve ‘zero trade deficit’. 美国所谓“对等关税”政策逻辑混乱，违背基本经济规律。美方税率计算简单粗暴，对各国（地区）确定的所谓“对等关税”税率，并非如美方声称的以“该国（地区）对美关税税率+非关税壁垒”计算得出，而是简单地将美对该国（地区）的逆差占该国（地区）对美出口额的比率，作为确定所谓“对等关税”税率的重要依据，将该比率打对折后作为加征关税税率，测算方式过于随意、缺乏合理正当依据。美方意图实现“逆差归零”不具有可行性，美国巨额贸易逆差的背后本质是美国国内经济的失衡。从国民经济核算角度看，一国经常项目是盈余还是赤字，取决于该国储蓄和投资的关系。美国经济的典型特征是低储蓄、高消费，储蓄长期低于投资，因此不得不通过贸易赤字形式大量利用外国储蓄，这是美国贸易逆差形成并长期存在的根本原因，是美国经济内生性、结构性、持续性现象。保护主义难以让美国制造业“起死回生”，加征关税更无法实现贸易“逆差清零”.
The so-called ‘reciprocal tariffs’ by the US are typical acts of tariff bullying and violate WTO rules. The so-called ‘reciprocal tariffs’ by the United States subvert the existing international economic and trade order and put the interests of the United States above the public interest of the international community. America’s so-called ‘reciprocity’ claim is deceptive and obfuscating, and in essence violates the WTO’s principle of MFN treatment. Its differentiated tariff rates violate the commitment of non-discrimination among WTO members. It is not only unhelpful in solving the United States’ own problems, such as trade deficit and improving industrial competitiveness, but will also seriously undermine the normal international economic and trade order and the security and stability of the global industrial chain and supply chain. As soon as the US policy was introduced, it immediately attracted widespread criticism and opposition from the international community. European Commission President Ursula von der Leyen said that the US ‘reciprocal tariff’ policy runs counter to the goals it wants to achieve, and the EU will take countermeasures. The Brazilian Congress passed the Economic Reciprocity Act, authorising the government to take measures to deal with US trade barriers. Chilean President Gabriel Boric said that the US government’s unilateral behavior will throw aside all principles within the WTO framework and embrace the concept of ‘might is right’. Australian Prime Minister Anthony Albanese criticized the US tariff policy for having no logical basis and violating the foundation of the partnership between the two countries. The so-called ‘reciprocal tariff’ policy of the United States is also unpopular at home. The domestic capital market in the US has plummeted for several days. On April 4, the three major New York stock indexes fell by more than 5%, and the Wall Street ‘fear gauge’ soared 46% in a single day. The market is voting with its feet and expressing strong concerns about the backlash effect that the so-called ‘reciprocal tariff’ may cause. 美国所谓“对等关税”是典型的关税霸凌行为，违反世贸组织规则。美方所谓“对等关税”颠覆现有国际经贸秩序，以美国利益凌驾于国际社会公利。其所谓“对等”主张具有欺骗性和迷惑性，实质上有违世贸组织最惠国待遇原则，其差别化税率违反世贸组织成员之间互不歧视的承诺，不仅无益于解决美贸易逆差和提升产业竞争力等自身问题，还将严重破坏正常的国际经贸秩序和全球产业链供应链安全稳定。美方政策一经出台，就立即招致国际社会的普遍批评和反对。欧盟委员会主席冯德莱恩表示，美国“对等关税”政策与其想要达到的目标背道而驰，欧盟方面将采取反制措施。巴西国会通过经济对等法案，授权政府采取措施应对美方贸易壁垒。智利总统博里奇表示，美国政府这一单边主义行为将包括世贸组织框架内的所有原则都抛在一边，是在拥抱“强权即公理”的理念。澳大利亚总理阿尔巴尼斯批评美国关税政策没有逻辑依据，违背两国伙伴关系基础。美国所谓“对等关税”政策在其国内也不得人心，美国内资本市场连日暴跌，4月4日纽约三大股指跌幅均超过5%，华尔街恐慌指数单日暴涨46%，市场正在用脚投票，对所谓“对等关税”可能造成的反噬效应表现出强烈担忧.
China’s countermeasures have been reasonable and legal. It is hoped that the US will return to the right track of solving the problem. In response to the so-called ‘reciprocal tariff’ policy of the US, China took necessary countermeasures immediately in order to resolutely defend its legitimate rights and interests and development interests. China’s position on the trade war is consistent and clear. China does not want to fight a trade war because there are no winners in a trade war, but China is not afraid of a trade war. If the United States introduces the so-called ‘reciprocal tariff’ measures, China will inevitably implement reciprocal countermeasures. The essence of Sino-US economic and trade relations should be mutual benefit and win-win. As two major countries, it is normal for China and the United States to have some economic and trade differences. The two sides should find solutions to their respective concerns through consultations on the basis of mutual respect and equal treatment, rather than unilaterally adopting containment and suppression or even extreme pressure. We urge the United States to immediately correct its wrong practices, strengthen communication and exchanges with China and relevant parties, and properly resolve economic and trade differences. 中方反制行为合情合理合法，希望美国回到解决问题的正确轨道。针对美国所谓“对等关税”政策，中国第一时间采取必要反制措施，坚决捍卫自身合法权益和发展利益。中方对贸易战的立场是一贯且明确的，中方不愿意打贸易战，因为贸易战没有赢家，但中方也不怕打贸易战，美方出台所谓“对等关税”措施，中方必然对其实施对等反制。中美经贸关系的本质应是互利共赢。中美作为两个大国，存在一些经贸分歧是正常的，双方应在相互尊重、平等相待的基础上，通过磋商找到解决各自关切的办法，而不是单方面采取遏制打压甚至极限施压的做法。我们敦促美方立即纠正错误做法，与中国和有关各方加强沟通交流，妥善解决经贸分歧.
China is firmly committed to upholding multilateralism and is willing to work with all countries to promote free trade and achieve mutual benefit and win-win results. We are willing to work with major economies and developing countries around the world to reform and improve the rules of the multilateral trading system, promote the liberalisation and facilitation of global trade and investment, and actively create a friendly international economic and trade ecology. China will make greater efforts to promote independent opening up, treat all types of business entities—including foreign-funded enterprises—equally, reform and improve the foreign investment promotion system and mechanism, guarantee the national treatment of foreign-funded enterprises in terms of factor acquisition, qualification licensing, standard setting, and government procurement, and actively create a market-oriented, law-based, internationalised first-class business environment. We will accelerate the expansion of a global network of high-standard free trade zones, promote the negotiation and signing of various forms of multilateral and bilateral economic and trade agreements, establish closer and mutually beneficial economic and trade relations with various countries, and enable trading partners to better share China’s development dividends. We will make greater efforts to maintain the stability of the global industrial chain and supply chain, guide enterprises to ‘go global’ in an orderly manner, create more investment, employment and industrial development opportunities for local areas, and promote the prosperity and stability of the world economy. 中国坚定不移维护多边主义，愿同各国共同促进自由贸易，实现互利共赢。我们愿同全球主要经济体和广大发展中国家共同改革完善多边贸易体制规则，推动全球贸易投资自由化便利化，积极塑造友好型国际经贸生态。我们将以更大力度推进自主开放，一视同仁、平等对待包括外资企业在内的各类经营主体，改革完善外商投资促进体制机制，保障外资企业在要素获取、资质许可、标准制定、政府采购等方面的国民待遇，积极营造市场化、法治化、国际化一流营商环境。我们将加快拓展面向全球的高标准自由贸易区网络，推动商签形式多样的多双边经贸协定，与各国建立更加紧密、互惠的经贸关系，让贸易伙伴更好分享中国发展红利。我们将以更大力度维护全球产业链供应链稳定，引导企业有序“出海”，为当地创造更多投资、就业和产业发展机遇，促进世界经济繁荣稳定.
China has always been a stable anchor and safe haven for the global economy, and welcomes foreign-funded enterprises to invest and establish themselves in China. China is the world’s second-largest economy, and its contribution to global economic growth has long remained at around 30%. In the past, whether it was responding to the Asian financial crisis at the end of the last century or the international financial crisis in 2008, China has played an important role in stabilising the global economy. At present, China has a super-large-scale market and a complete industrial system. It is the world’s second-largest consumer market and is home to the world’s largest middle-income group. It has a solid foundation and strong resilience to cope with external risks and challenges. At the same time, China’s economy is moving towards ‘newness’, accelerating the construction of a modern industrial system, developing new quality productive forces according to local conditions, and nurturing the high-end, digital and green development of the manufacturing industry. New technologies, new products and new formats are emerging rapidly, ensuring that China will continue to be a fertile ground for attracting foreign investment. More importantly, China has maintained political stability and social stability for a long time, and the certainty of the policy environment is in sharp contrast with the uncertainty of the external environment. The Third Plenary Session of the 20th CPC Central Committee emphasised the construction of a new system of open economy at a higher level, and clarified the institutional framework for expanding high-level opening up in the future. China continues to strengthen the construction of the legal and regulatory system for opening up to the outside world, effectively implements the Foreign Investment Law, and creates a transparent, stable and predictable policy environment for foreign investors. It is precisely because of this valuable certainty that an increasing number of international investors are optimistic about the Chinese market and development prospects. China welcomes companies from all over the world to invest and establish themselves in China and share the huge opportunities for the development of the Chinese market. 中国始终是全球经济的稳定锚和避风港，欢迎外资企业来华投资兴业。中国是世界第二大经济体，对全球经济增长贡献率长期保持在30%左右，在过去一个时期，无论是应对上世纪末的亚洲金融危机还是2008年国际金融危机，都为全球经济稳定发挥了重要作用。当前，中国拥有超大规模市场和完备产业体系，是全球第二大消费市场，拥有全球最大规模中等收入群体，具备应对外部风险挑战的坚实基础和强大韧性。同时，中国经济向“新”而行，正在加快建设现代化产业体系，因地制宜发展新质生产力，制造业高端化数字化绿色化发展态势明显，新技术新产品新业态加速涌现，将继续成为吸引外资的沃土。更为重要的是，中国长期保持政局稳定、社会安定，政策环境的确定性与外部环境的不确定性形成鲜明对比。党的二十届三中全会强调建设更高水平开放型经济新体制，为未来一个时期扩大高水平对外开放明确制度框架。中方持续加强对外开放法律法规体系建设，有效实施外商投资法，为外国投资者打造透明、稳定、可预期的政策环境。正是因为这种难能可贵的确定性，越来越多的国际投资者看多看好中国市场和发展前景。中方欢迎全球各国企业来华投资兴业，共同分享中国市场发展的巨大机遇.
Also on the front page is a commentary discussing the US tariff policy. It says:
“It is necessary to objectively analyse the impact of the US’ arbitrary tariff actions on China, rationally view the favourable momentum of China’s economic development, and strengthen confidence in responding to this round of US containment and suppression.” 美国政府逆世界潮流而动，对包括我国在内的几乎所有贸易伙伴出台所谓的“对等关税”，我国第一时间采取了坚决有力的反制措施，引发全球高度关注。当前应客观分析美滥施关税对我影响，理性看待我国经济发展良好态势，坚定应对美这一轮遏压的信心.
The piece then makes four points:
The US arbitrary imposition of tariffs will cause us a shock, but ‘the sky will not fall.’ The 34% tariff imposed by the US government on China this time, together with the previous tariffs, will seriously suppress bilateral trade, inevitably have a negative impact on China’s exports in the short term, and increase the downward pressure on the economy. However, it should be noted that China is a super-large economy. Facing the impact of US tariff bullying, we possess strong resilience. In recent years, we have actively built a diversified market, and our dependence on the US market has been declining. China’s exports to the US have dropped from 19.2% in 2018 to 14.7% in 2024. The decline in exports to the US will not have a subversive impact on the overall economy.
Many products in the United States are highly dependent on China. At present, the US cannot do without China in many consumer goods, and many investment goods and intermediate products also need to be imported from China. The dependence of several categories exceeds 50%, and it is difficult to find alternative sources in the international market in the short term. In this backdrop of the deep integration of global production and supply chains, it is impossible for China-US trade to be completely interrupted. Emerging markets have huge potential for economic and trade cooperation and are increasingly becoming an important basis for China to stabilise its foreign trade. China is the main trading partner of more than 150 countries and regions in the world. Since 2018, China’s exports to ASEAN have increased from 12.8% to 16.4%, and its exports to countries participating in BRI have increased from 38.7% to 47.8%, maintaining rapid growth momentum. The domestic market has a broad buffer space and is an important rear stronghold. According to statistics, among the hundreds of thousands of companies with export performance in China in 2024, nearly 85% of them also carry out domestic sales business, with the amount of domestic sales accounting for nearly 75% of their total sales. The country is accelerating efforts to clear policy blockages and chokepoints in the shift from export to domestic sales, and is also intensifying and expanding policies to boost domestic demand. The accommodating effect of the domestic demand market will increasingly become evident.
（一）美滥施关税将对我造成冲击，但“天塌不下来”。此次美国政府对我加征34%的关税，加上此前加征的关税，将严重抑制双边贸易，短期内不可避免地对我出口造成负面影响，加大经济下行压力。但要看到，中国是超大规模经济体，面对美国的关税霸凌冲击，我们具有强大的抗压能力。近年来我们积极构建多元化市场，对美市场依赖已在下降。我对美出口占全部出口的份额已从2018年的19.2%降至2024年的14.7%，对美出口下降不会对整体经济造成颠覆性影响。美国内不少产品对我依存度较高。当前美国不仅在很多消费品上离不开中国，很多投资品和中间产品也需要从中国进口，有若干品类依存度超过50%，短期内在国际市场上很难找到替代来源。在全球产供链深度交融的大背景下，中美贸易不可能完全中断。新兴市场经贸合作潜力巨大，日益成为我稳外贸的重要基础。我国是全球150多个国家和地区的主要贸易伙伴，2018年以来，我对东盟出口占比由12.8%提升到16.4%，对共建“一带一路”国家出口占比由38.7%提升到47.8%，且保持较快增长势头。国内市场缓冲空间广阔，是重要的大后方。据统计，2024年我有出口实绩的数十万家企业中，接近85%的企业同时开展内销业务，内销金额占销售总额的近75%。国家正加快打通“出口转内销”政策堵点、卡点，扩内需各项政策也在加力扩围，内需市场的容纳效应将日益显现.
Currently, our country’s economy is stabilising and improving, giving us confidence and strength to respond to the impact of US tariffs. Since the United States provoked a trade war against China in 2017, no matter how the US attacks or sought to suppress us, we have consistently maintained development and progress, demonstrating resilience that ‘grows stronger under pressure’, which has become our greatest strength in responding to external shocks. Economic circulation continues to improve. In recent years, we have continuously optimised supply, improved demand, facilitated domestic economic circulation, and significantly strengthened the economy’s endogenous momentum. Especially after the meeting of the Politburo on September 26, 2024, with the implementation of a series of incremental policies, the domestic economy continued to pick up and improve. In the first two months of this year, domestic demand growth including investment and consumption was better than expected, exports initially withstood the test, manufacturing and service PMIs continued to rise, and the first quarter is expected to achieve growth of over 5%. Technology empowerment continues to exert its strength. We have seized the development of new quality productive forces as the most important supply-side focus, adhering to technological innovation to drive industrial innovation, achieving multiple breakthroughs in areas such as integrated circuits, artificial intelligence, and humanoid robots, demonstrating the tremendous vitality of China’s scientific and technological innovation. ‘Chokepoint’ restrictions and suppression will only force China to accelerate breakthroughs in key core technologies in critical areas. In recent years, we have withstood internal and external pressures, persisted in doing the difficult but right things, and continuously resolved risks in key areas such as real estate, local government debt, and small- and medium-sized financial institutions. At present, the three major risks have been effectively controlled and are in a converging state. Positive changes have appeared in the real estate market and in social confidence, with a relatively clear warming trend in first-tier cities. Expectations from all sides continue to improve. Our long-term stable social environment, continuously optimised business environment, and consistent policies that remain committed to set goals and follow a unified blueprint all provide enterprises with long-term stable expectations. Since the beginning of this year, domestic and international views on China’s economic prospects have clearly improved. International organizations such as the OECD and many Wall Street financial institutions have successively raised their forecasts for China’s economic growth, are optimistic about China’s capital market, and regard China’s ‘certainty’ as a safe haven to hedge against the American ‘uncertainty’.”
当前我国经济企稳向好，应对美关税冲击有底气、有信心。2017年美国挑起对华贸易战以来，无论美国怎么打、怎么压，我们始终保持发展和进步，展现了“越压越强”的韧性，这成为我们应对外部冲击的最大底气。经济循环不断改善。近年来我们持续优化供给、改善需求，畅通国内经济循环，经济内生动力明显增强。尤其是去年9月26日中央政治局会议后，随着一系列增量政策落实，国内经济持续回升向好。今年前两个月，投资、消费等国内需求增长好于预期，出口初步经受住了考验，制造业和服务业PMI持续回升，一季度有望实现5%以上的增长。科技赋能持续发力。我们抓住发展新质生产力这一最重要的供给，坚持以科技创新带动产业创新，在集成电路、人工智能、人形机器人等领域多点突破，展现了中国科技创新的巨大活力。“卡脖子”、打压遏制只会倒逼中国加快实现重点领域核心技术突破。风险缓释成效明显。近年来，我们顶住内外压力，坚持做困难而正确的事，持续化解房地产、地方政府债务、中小金融机构等重点领域风险。目前，三大风险得到有效控制，处于收敛状态。房地产市场交易和社会信心出现积极变化，一线城市回暖态势比较明显。各方预期不断改善。我国长期稳定的社会环境、不断优化的营商环境，咬定目标不放松、一张蓝图绘到底的政策连续性，为企业提供了长期稳定预期。今年以来，海内外对我国经济前景的看法明显改善，经济合作与发展组织等国际组织以及很多华尔街金融机构纷纷上调对我国经济增长的预测，看好中国资本市场，并将中国的“确定性”视为对冲美方“不确定性”的避风港.
Facing America’s reckless abuse of tariffs, we know what we’re doing and have clear countermeasures at hand. We have been in a trade war with the United States for 8 years and have accumulated rich struggle experience. Although the international market generally believes that the US abuse of tariffs exceeds expectations, the Party Central Committee has already anticipated the new round of economic and trade suppression by the US against us, has fully estimated the possible impact it may cause, and the response plans have been prepared with sufficient advance preparedness and surplus provisions. Last year, the Central Economic Work Conference made comprehensive arrangements on how to respond to the new round of US containment and suppression against China, emphasising the need to enrich and improve the policy toolbox, dynamically adjust policies according to the degree of external impact, strengthen extraordinary counter-cyclical adjustments, and improve the forward-looking, targeted and effective nature of macroeconomic regulation. Many policies we introduced at this year’s Two Sessions, such as setting this year’s fiscal deficit rate at around 4% and using treasury bond funds to expand support for ‘two new’ and ‘two heavy’ projects. These are concrete manifestations of extraordinary policies.
In the future, according to needs of the situation, monetary policy tools such as reserve requirement ratio cuts and interest rate cuts have sufficient adjustment room and can be introduced at any time; fiscal policy has already clearly stated the need to increase spending intensity and accelerate the pace of spending, and tools such as fiscal deficits, special-purpose bonds, and special treasury bonds still have room for further expansion as needed; we will use extraordinary measures to boost domestic consumption, accelerate the implementation of established policies, and introduce a batch of reserve policies in a timely manner; we will resolutely stabilise the capital market and stabilise market confidence with practical policy measures, and relevant plans and policies will be introduced one after another; governments at all levels will provide precise assistance to industries and enterprises more severely impacted with ‘one approach for each sector’ and ‘one strategy for each enterprise’, supporting enterprises in adjusting business strategies, guiding and helping enterprises to develop domestic and non-US markets while maintaining trade with the US as much as possible. At the same time, we will urge the United States to correct its wrong practices and consult with China and other countries in the world in an equal, respectful and mutually beneficial manner to properly resolve trade differences.
面对美滥施关税的乱拳，我们心中有数、手上有招。我们已与美国打了8年贸易战，积累了丰富的斗争经验。虽然国际市场普遍认为美滥施关税超预期，但党中央对美方对我实施新一轮经贸遏压已有预判，对其可能造成的冲击有充分估计，应对预案的提前量和富余量也打得较足。去年中央经济工作会议已经就如何应对美新一轮对华遏制打压作出全面部署，强调要充实完善政策工具箱，根据外部影响程度动态调整政策，加强超常规逆周期调节，提高宏观调控的前瞻性、针对性、有效性。今年全国两会上，我们出台的很多政策，如将今年财政赤字率确定为4%左右，运用国债资金扩大对“两新”“两重”的支持等都是超常规政策的具体体现。未来根据形势需要，降准、降息等货币政策工具已留有充分调整余地，随时可以出台；财政政策已明确要加大支出强度、加快支出进度，财政赤字、专项债、特别国债等视情仍有进一步扩张空间；将以超常规力度提振国内消费，加快落实既定政策，并适时出台一批储备政策；以实实在在的政策措施坚决稳住资本市场，稳定市场信心，相关预案政策将陆续出台；各级政府将“一行一案”“一企一策”精准帮扶受冲击较大的行业和企业，支持企业调整经营策略，指导帮助企业在尽可能维持对美贸易的同时，开拓国内市场和非美市场。同时，我们将敦促美方纠正错误做法，以平等、尊重、互惠的方式，同中国和世界各国磋商，妥善解决贸易分歧.
Unwaveringly do our own work well, and respond to the adjustment of the external environment with the adjustment of the domestic economic structure. In today’s world, the unprecedented changes unseen in a century are accelerating, and US tariff policies further increase the uncertainty in the global political and economic landscape. As a responsible major country in the world, we must turn pressure into motivation, regard responding to the impact from American policy as a strategic opportunity to accelerate the building of a new development pattern, promote high-quality development, and advance economic structural adjustment, thereby injecting more stability into global economic development through our own stability and progress. Faced with high tariffs continuously shrinking the trade space with the US, we must make expanding domestic demand a long-term strategy, strive to make consumption the main driving force and ballast stone of economic growth, and leverage the advantages of our super-large scale market. On the one hand, starting from the demand side, we must increase residents’ income and reduce their burdens through solid efforts, improving residents’ consumption ability and willingness; on the other hand, exerting effort from the supply side, it is necessary to accelerate the construction of a unified national market, improving the business environment, and supporting domestic enterprises to provide more high-quality products and services centered around people’s needs.
坚定不移办好自己的事，以国内经济结构调整应对外部环境调整。当今世界百年未有之大变局加速演进，美国关税政策进一步加剧全球政经格局走势的不确定性。作为负责任的全球大国，我们要变压力为动力，将应对美方冲击视为加快构建新发展格局、推动高质量发展、促进经济结构调整的战略机遇，以自身的稳定发展，为全球经济发展注入更多稳定性。面对高关税持续压缩对美贸易空间，我们更要把扩大内需作为长期战略，努力把消费打造成经济增长的主动力和压舱石，发挥超大规模市场优势。一方面，从需求侧入手，通过扎扎实实地推动居民增收减负，提高居民的消费能力与意愿；另一方面，从供给侧发力，加快全国统一大市场建设，改善营商环境，支持国内企业更多围绕老百姓的需求提供高质量产品和服务.
Faced with volatility and extreme pressure from the United States, we have not closed the door to negotiations, but we also do not harbour any wishful thinking/illusions, and have instead made various preparations to respond to shocks. Those united in purpose will prevail, those weathering storms together will prosper. With the strong leadership of the Party Central Committee and the institutional advantage of concentrating efforts on major tasks, we will certainly be able to turn crisis into opportunity and progress steadily. As General Secretary Xi Jinping pointed out: ‘China’s economy is a vast sea, not a small pond.’ This vast sea can withstand the baptism of violent storms, resist the invasion of chill of the headwinds of trade, and will ultimately show the world the composure and firmness of ‘the sea that embraces all rivers’.” 面对美方的多变易变、极限施压，我们没有关上谈判大门，但也不会心存侥幸，而是做好了应对冲击的各种准备。上下同欲者胜，风雨同舟者兴。我们有党中央的坚强领导，有集中力量办大事的制度优势，一定能够化危为机、行稳致远。正如习近平总书记所指出：“中国经济是一片大海，而不是一个小池塘”。这片大海经受得起狂风骤雨的洗礼，抵御得住贸易寒流的侵袭，终将让世人见证“海纳百川”的从容与坚定.