Chinese Vice Premier Liu calls for liquidity support, says 'external pressure' can help economy: media reports

14, Jun. 2019

TOKYO, NNA – The Chinese government should support the economy by providing ample cash liquidity, Vice Premier Liu He told a forum in Shanghai on Thursday, according to news reports.

He also said suppliers of goods and services must generate new demand as middle-income earners already own homes and cars.

Liu, who is also the lead negotiator in the U.S.-China trade talks, said that with the new policy actions, the government aims to promote reforms and open up its markets.

People’s Bank of China Governor Yi Gang said last week that there was “tremendous” room to make policy adjustments if the trade war worsens.

U.S. President Donald Trump raised tariffs on Chinese goods last month while threatening there could be more to come.

While not mentioning the trade dispute directly, Lui appeared to shrug off the threat. “At present, we do have some external pressures, but those external pressures will help us boost our self-reliance in innovation and accelerate the pace of high-speed development,” he was quoted as telling the forum by Reuters.

Beijing has lowered its target for economic growth to a range of 6 to 6.5 percent for this year, down from around 6.5 percent for last year.