‘China Won't Be Intimidated,' Commerce Minister Says

Bloomberg

06-03-2025

00:00
[CC may contain inaccuracies] FRANCINE: SPEAKING EARLIER THIS HOUR, CHINA'S COMMERCE MINISTER SAID U.S. TARIFFS WILL DISRUPT SUPPLY CHAINS, HINDER GLOBAL GROWTH, AND IF WASHINGTON GOES FURTHER, BEIJING WILL RESPOND IN KIND. ECONOMIC LEADERS HAVE BEEN OUTLINED FISCAL MEASURES AS PART OF THE NATIONAL PEOPLE'S CONGRESS. STEPHEN ENGLE JOINS US NOW FROM BEIJING. THANK YOU FOR JOINING US. THE PRESS CONFERENCE HAS JUST ENDED. WHAT WERE YOUR KEY TAKEAWAYS? IT WAS A FAIRLY STATE OF HAIR FOR THE FIRST COUPLE OF HOURS UNTIL A DIRECT QUESTION CAME IN ON CHINA'S RESPONSE TO THE TRUMP TARIFFS AND THAT IS WHERE THE COMMERCE MINISTER SORT OF UNLEASHED SOME SHARPENING WORDS AGAINST THAT TRADE ACTION. JUST YESTERDAY OR THE DAY BEFORE, WE SAW THE RETALIATORY COME THE SECOND RETALIATORY STEPS ON SOME $22 BILLION WORTH OF U.S. GOODS ON SOME TARIFFS ON TOP OF $14 BILLION WORTH OF U.S. GOODS A COUPLE WEEKS AGO OR THREE OR FOUR WEEKS AGO. THE FIRST 10% COMING UP TO 20% FROM THE UNITED STATES. THE MINISTER SAID THIS TYPE OF COERCION AND EXTORTION WON'T WORK ON CHINA. CHINA WON'T BE INTIMIDATED. IF THE U.S. CONTINUES DOWN THIS PATH, CHINA WILL CONTINUE TO RETALIATE IN KIND. HE WENT ON TO SAY THE U.S. SHOULD START ACTING LIKE A BIG COUNTRY AND GET ALONG WITH OTHERS. THOSE WERE THE SHARPEST WORDS COMING FROM THE COMMERCE MINISTER. SOME OF THE OTHER PEOPLE UP ON THE STAGE, INCLUDED THE CENTRAL BANK GOVERNOR AS WELL AS THE FINANCE MINISTER, THE TOP PLANNING BODY HAD COME AND THE SECURITIES REGULATOR. AND ALL KIND OF TOAD A SIMILAR LINE THAT THE CHINESE ECONOMY WILL HAVE ENOUGH STIMULUS TO OTHER INTERNAL DOMESTIC ECONOMY STRUGGLES AS WELL AS THOSE OTHER EXTERNAL UNCERTAINTIES. FRANCINE: WHAT ARE THE CHALLENGES TO CHINA'S AMBITIOUS GROWTH GOALS? I THINK THEY ALLUDED TO IT AS WELL. PBOC GOVERNOR ESSENTIALLY SAID WE HAVE THE TOOLS IN PLACE. WE CAN CUT INTEREST RATES. WE CAN CUT TRIPLE RESERVE RATIO REQUIREMENTS WHEN NECESSARY. IT IS A SENTIMENT ECHOED BY THE FINANCE MINISTER. THEY PUT ON A BRAVE FACE. WE ALL KNOW THE PROPERTY SECTOR HAS DRAGGED DOWN CONSUMER CONFIDENCE AND THE NUMBER ONE PRIORITY IS OUTLINED BY THE PREMIER YESTERDAY, BOOSTING DOMESTIC DEMAND AND BOOSTING DOMESTIC CONSUMPTION IS GOING TO BE AT THE HEART OF THAT. THE BIGGEST CHALLENGE PERHAPS IS THE WILDCARD COMING FROM WASHINGTON, WHETHER FURTHER TIT-FOR-TAT TRADE WAR COULD BASICALLY MEAN CHINA WILL NEED MORE STIMULUS TO PROP UP ITS OWN ECONOMY DOWN THE ROAD. MOST ECONOMISTS I HAVE SPOKEN TO EXPECT CHINA TO HAVE GIVEN THEMSELVES ROOM TO ADD MORE STIMULUS PERHAPS AT THE MEETING IN APRIL OR FURTHER DOWN THE ROAD IF THE EXTERNAL ENVIRONMENT DETERIORATES FURTHER. THEY DO CLAIM THEY CAN HAVE MONETARY AND FISCAL LEVERAGE TO