In response to escalating tariffs, China’s leaders have pledged new support measures for businesses affected by the trade conflict with the U.S. The Politburo met on Friday and outlined several forms of assistance, including expedited tax rebates and easier credit access, according to a readout. The pledge follows new US tariffs exceeding 100% imposed this month, prompting financial institutions to lower projections for China’s economic growth in 2025. Beijing remains committed to achieving its target of around 5% GDP growth despite these challenges. The People’s Bank of China will be encouraged to cut interest rates and reserve requirements when needed, as per a Chinese readout from CNBC. Zong Liang, chief researcher at the Bank of China, suggests that policymakers are focused on targeted interventions based on the most affected industries. The Chinese government’s commitment is evident in expanding its deficit target to 4% of GDP this year, followed by increased spending plans, and provincial governments and large firms have begun prioritizing domestic market expansion following the latest tariff escalation. The Politburo called for efforts to boost middle- and low-income households’ earnings and spending on services while continuing with AI initiatives. The government’s focus on targeted support measures has been echoed in recent statements from both the State Council and various ministries, further indicating a commitment to navigating the economic headwinds presented by these tensions. Asian stock markets reacted modestly following Friday’s announcement, with brief dips in the CSI 300 index and trimming of gains in the Hong Kong Hang Seng index. Observers anticipate concrete policy implementations rather than broad promises from businesses as the tariff standoff shows no immediate signs of resolution.