Business

China Vice-Premier urges more support measures for economy

SHANGHAI Chinese regulators should step up support for the economy and keep ample liquidity in the financial system, its Vice-Premier Liu He said yesterday, suggesting Beijing would soon unveil more policies to bolster growth amid rising US trade pressure.

Trade talks between the world's two largest economies collapsed last month, with US President Donald Trump accusing China of watering down commitments it had made. He raised tariffs on Chinese goods and has threatened even more.

Beijing has plenty of policy tools and is capable of dealing with various challenges, Mr Liu, who is also the lead negotiator in the US-China trade talks, told a financial forum in Shanghai.

Mr Liu's comments came a day after data showed China's credit growth was weaker than expected last month, reinforcing market expectations that more monetary easing is needed. Factory activity contracted in May and imports fell the most in nearly three years.

"We do have some external pressures, but those external pressures will help us boost our self-reliance in innovation and accelerate the pace of high-speed development," he said.

The government will announce more measures to promote reforms and opening up of its markets, added Mr Liu.

People's Bank of China chief Yi Gang said last week there was "tremendous" room to make policy adjustments.

Earlier yesterday, China Daily, citing economists, said China is expected to adjust money and credit supply in coming weeks to counter risks if the trade outlook deteriorates.

The Commerce Ministry also said yesterday that Beijing will not yield to any "maximum pressure" from Washington, and any attempt by the US to force China into accepting a trade deal will fail.- REUTERS

BUSINESS & FINANCE