China boosts support for businesses amid trade war uncertainties

[WORLD] China is intensifying its efforts to bolster businesses and safeguard jobs impacted by ongoing trade tensions, with senior officials from two major government bodies convening separate meetings with private sector representatives within hours of each other on Wednesday.

These meetings come at a time of mounting concern over a slowdown in key segments of the economy—particularly in manufacturing and export-driven industries, which have been hardest hit by the protracted trade dispute. While recent tariff rollbacks have been welcomed as a step in the right direction, analysts caution that the broader effects of the conflict are likely to continue weighing on short-term economic growth.

The swift succession of meetings signals Beijing’s recognition that more must be done to stabilise the economy and labour market, even after China and the United States agreed earlier this week to significantly reduce tariffs on each other’s goods.

Beyond trade-related headwinds, domestic challenges—including rising unemployment in some areas and restricted credit access for small businesses—are also prompting policymakers to act. Regional governments in provinces such as Guangdong and Zhejiang have already launched targeted stimulus initiatives, offering tax relief and subsidies to support vulnerable sectors.

On Wednesday, Bai Qingyuan, deputy head of the State Administration for Market Regulation (SAMR), met with executives from major internet platforms and banks to explore ways to support the self-employed, according to an official statement.

The attention on self-employed workers—who make up nearly 60% of urban employment—underscores the government’s commitment to protecting grassroots livelihoods. Proposed support measures include simplified business licensing, lower platform service fees for online sellers, and expanded access to microloans, all aimed at easing the burden on millions of small-scale entrepreneurs.

International observers are closely monitoring how Beijing’s domestic policy shifts align with its broader trade agenda. Some experts argue that ensuring economic stability at home is essential for China to maintain negotiating power as both nations move toward a potential "phase two" of trade talks.

China’s combined focus on regulatory easing and financial support reflects a multi-faceted strategy to mitigate economic shocks. As global markets continue to fluctuate, the success of these initiatives may prove crucial in determining the country’s economic direction in the months ahead.