China moves to protect economy from trade war, vows to hit 5% growth target

China announced a series of measures to protect its economy and workers from the impact of an intensifying trade war with the United States on Monday, as officials said they remained “fully confident” of hitting the country’s annual economic growth target of about 5 per cent.

“We still have ample policy reserves and plenty of policy space,” said Zhao Chenxin, deputy head of the National Development and Reform Commission, the country’s top economic planning body, at a press conference.

“No matter how the international situation evolves, we will stay focused on our development goals … and concentrate on managing our own affairs well. We are fully confident in achieving this year’s economic and social development targets.”

Zhao said the government would roll out a series of measures to shore up the employment market amid the trade war, as Beijing looks to allay concerns about potential large-scale job losses in China’s export sector if US tariffs remain in place.

Beijing will stabilise the job market by encouraging companies to maintain stable hiring, stepping up vocational training schemes, expanding employment through public works programmes and other supportive projects, and strengthening public employment services, according to Zhao.

Zhao added that the government was stepping up efforts to implement previously announced policies, such as a scheme to boost consumption and a move to set up a venture capital guidance fund – with the policies likely to fully take effect in the second quarter.