China to Boost Consumption Amid Trade Uncertainties

Chinese Premier Li Qiang urged countries not to turn trade into a political or security issue, saying "globalization will not be reversed" during the World Economic Forum's annual conference in China. Li maintained an optimistic view of the Chinese economy and stated that authorities would implement measures to make China a major consumption powerhouse. He also emphasized the importance of international cooperation, citing a recent agreement signed by over 30 countries in Hong Kong to establish an international mediation organization. Li's comments come amid rising tariffs and trade tensions, with economists noting that China's economy is expected to remain competitive despite challenges.

Chinese Premier Li Qiang addressed the "Summer Davos" forum in Tianjin, stating that China will become a major consumption power, amid heightened global tensions and uncertainty in international trade, with the country facing challenges from the US, EU, and Middle East conflicts, and Beijing seeking to boost its domestic market and safeguard its global supply chains.

China's central bank is providing additional financing support to boost domestic consumption, announcing a 500 billion yuan relending quota to help financial institutions offer consumption and pension loans, amid trade uncertainties and unemployment pressures. The People's Bank of China, along with five other government departments, issued guidance with 19 initiatives to support key sectors such as retail, hotels, and tourism, and encourage financial institutions to extend loans to businesses in these areas. Meanwhile, Guangdong province plans to hand out vouchers and subsidies to further promote consumption.