China’s Political Bureau (Politburo) has announced measures to support businesses and workers affected by US tariffs, according to state media reports on April 25, 2025.

The decision-making body aims to stabilize employment and enhance economic resilience amid ongoing trade tensions with the US.

The Politburo outlined plans to ease monetary policy, accelerate debt issuance, and increase returns from the unemployment insurance fund for companies significantly impacted by tariffs.

These measures aim to protect jobs and stabilize enterprises.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s protective measures follow established patterns from previous trade conflicts

China’s current policy responses mirror strategies used during the 2018-2019 trade war when first facing significant U.S. tariffs.

During that period, China deployed similar protective measures, including increasing agricultural subsidies for domestic soybean production from $170 to $340 per acre while cutting corn subsidies to incentivize farmers to shift production1.

The Politburo’s current emphasis on unemployment insurance returns and financing support for affected companies represents a continuation of China’s approach to buffering domestic industries from external shocks.

In 2018, when faced with 25% tariffs on $50 billion of goods, China focused on protecting vulnerable industries through diversifying import sources and implementing domestic support programs2.

These patterns demonstrate how China has developed systematic responses to trade pressures that prioritize employment stability and domestic economic resilience over immediate retaliation.

2️⃣ The scale of China’s preparatory measures indicates serious economic concerns

China’s call to prepare for “worst-case scenarios” and the comprehensive package of monetary easing, debt issuance, and employment support reflects a substantial economic threat assessment.

J.P. Morgan projects that US tariffs could reduce China’s GDP growth by approximately 0.7 percentage points to 4.4% in 2025, representing billions in economic activity3.