China Unleashes Economic Easing Amid U.S. Trade Tensions

Chinese authorities unveiled a series of economic stimulus plans on Wednesday, including notable interest rate cuts and significant liquidity injections. This move is aimed at mitigating the economic impact of ongoing trade tensions with the United States. These announcements coincide with upcoming talks between U.S. Treasury Secretary Scott Bessent, chief trade negotiator Jamieson Greer, and China's top economic official He Lifeng in Switzerland.

The discussions mark a crucial opportunity for both nations to de-escalate the ongoing tariff dispute, which has disrupted global markets and supply chains. Recent data revealed that China's factory activity contracted at the fastest rate in over a year due to these trade challenges, raising concerns about employment and deflationary pressures.

China's central bank will reduce its seven-day reverse repurchase agreement rate by 10 basis points, alongside a reserve requirement ratio cut releasing significant liquidity into the banking system. Additional measures include financial market investments and support for tech-related bonds, aiming to strengthen China's economic resilience amid prolonged U.S.-China trade negotiations.

(With inputs from agencies.)