Chinese policymakers on Monday sought to assuage concerns the broad U.S. tariffs could derail efforts to shore up a fragile economic recovery, even as analysts warn the hefty levies raise the risk of a sharp downturn in growth.
However, Zhao Chenxin, vice head of the National Development and Reform Commission (NDRC), China's state planner, said he was "fully confident" the country will achieve its economic growth target of around 5% for 2025.
Zhao refrained from announcing any new support or stimulus measures, but said the NDRC would roll out new policies over the second quarter in line with the prevailing economic conditions at the time.
"The achievements of the first quarter have laid a solid foundation for the economic development of the whole year," Zhao said. "No matter how the international situation changes, we will anchor our development goals, maintain strategic focus and concentrate on doing our own thing."
The assurance contrasted with a general consensus among China observers that the spiralling trade war with the United States would have a significant impact on growth in the world's second-biggest economy.
Washington has slapped 145% tariffs on most Chinese goods as part of Trump's "Liberation Day" salvo on April 2, prompting Beijing to retaliate with 125% levies on U.S. imports, effectively imposing a trade embargo on each other's goods.
Chinese President Xi Jinping has toured Southeast Asia and other officials have intensified diplomatic outreach to unite countries against Trump's tariff offensive. Beijing has also threatened retaliation against capitals siding with Washington.
The trade war comes at a particularly difficult time for China's economy, which is flirting with deflation due to sluggish income growth and a prolonged property crisis.
Analysts expect Beijing to deliver more monetary and fiscal stimulus over the coming months to underpin growth.
Speaking alongside Zhao, deputy governor of the People's Bank of China, Zou Lan, said the PBOC would make further cuts to interest rates and the amount commercial banks must hold in reserve, while reaffirming a commitment to keeping the yuan stable.
The PBOC last cut its main policy rate in September, lowering its 7-day reverse repo rate by 20 basis points.
