China Politburo signals confidence in economy despite trade war

The body led by President Xi Jinping also vowed to focus on implementing existing pro-growth measures, while acknowledging that “risks and challenges are still rife.”

China’s top leadership touted their nation’s economic strength while vowing to maintain support to keep growth humming, after the start of President Donald Trump’s trade war proved less damaging than some expected.

The world’s No. 2 economy has displayed “great vitality and resilience” this year, the Communist Party’s decision-making Politburo said, according to a readout published Wednesday by the state-run Xinhua News Agency.

The body led by President Xi Jinping also vowed to focus on implementing existing pro-growth measures, while acknowledging that “risks and challenges are still rife.”

The 24-member Politburo typically gathers at the end of July to discuss economic policy for the second half of the year. This week’s meeting came hours after trade talks led by US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng wrapped in Stockholm. That huddle was aimed at extending a 90-day truce to sky-high tariffs that could cut off bilateral trade.

“Macroeconomic policies must remain robust and be strengthened when necessary,” according to the readout, which said leaders pledged to accelerate government bond issuance and fund use. Monetary policy will aim to keep liquidity “ample” and promote reductions in borrowing costs, it added.

Authorities will address excess competition among enterprises and advance the management of overcapacity in key industries, it added. Local government practices in attracting investment will also be regulated, it said.

The Chinese economy has held up surprisingly well in the face of US tariffs, thanks to resilient exports and government support for consumer spending and investment. But deflationary pressures are intensifying, with top officials increasingly calling for an end to price wars among industries that are worsening a downward spiral in company profits and wages.