President Xi Jinping is strengthening China’s economy ahead of trade negotiations with the U.S., scheduled for the weekend. Hours after confirming that Chinese Vice Premier He Lifeng will travel to Switzerland to meet with U.S. Treasury Secretary Scott Bessent and Trade Representative James Grier, certain economic officials from China announced measures aimed at stabilizing markets, boosting technological innovation, and protecting small businesses. In a brief press conference in Beijing today (May 7, 2025), central bank governor Pan Gongsheng announced horizontal interest rate cuts along with other measures that could inject 2.1 trillion yuan (291 billion USD) into the economy. This marks the most significant easing by China since Donald Trump’s ‘mutual’ tariffs initiated a trade war that has disrupted markets, according to Bloomberg. Trump recently stated in an interview on NBC that ‘China is getting killed right now,’ while Bessent described the country’s 145% tariffs as ‘unsustainable’ for China.
Xi Jinping Boosting China’s Economy Ahead of Trade Talks with the US
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