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Investing.com - Chinese policymakers reportedly moved on Monday to reiterate their confidence that the world’s second-largest economy will hit its annual growth target despite the impact of sweeping U.S. tariffs.
U.S. President Donald Trump has made China a central focus of his punishing trade agenda, placing import tariffs of at least 145% on the country. Beijing has responded with 125% retaliatory levies of its own, sparking concerns over an escalating trade war.
Along with a dent to U.S. growth, economists have flagged that the tariffs will likely weigh on a Chinese economy that has already been grappling with tepid consumer demand and a protracted property market crisis. Several businesses have also flagged concerns over the broader uncertainty caused by the trade tensions, noting that it has become more complicated to plan out future investments.
Still, Zhao Chenxin, vice head of China’s state planner -- the National Development and Reform Commission -- said he remained "fully confident" that the country will reach its economic expansion target of roughly 5% this year, Reuters reported.
Analysts have suggested that Beijing may need to roll out a raft of fresh stimulus measures in response to the pressure from the U.S. tariffs. Zhao did not announce any changes, although he said the NDRC would introduce new policies during the second quarter, Reuters said.
Zhao’s comments come despite a host of analysts -- and the International Monetary Fund -- recently lowering their growth outlooks for China in 2025 and next year. Projections from the IMF, UBS, and Goldman Sachs are all below China’s 5% target level.