China’s Strategic Move: Central Bank’s Liquidity Boost Amid U.S. Trade Tensions


Source: devdiscourse.com devdiscourse.com

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In a noteworthy development, China's central bank governor declared on Wednesday a decision to cut the reserve requirement ratio by 50 basis points. This is the first such reduction for 2025, signaling policymakers' intent to bolster an economy hampered by a continuous trade conflict with the United States. Governor Pan Gongsheng of the People's Bank of China highlighted that this maneuver would inject approximately 1 trillion yuan, or $138 billion, into the financial system, providing much-needed liquidity. The strategic decision comes as China fortifies itself against U.S. trade challenges, particularly after President Donald Trump's imposition of substantial tariffs on Chinese...