China 🇨🇳 has just announced a large-scale economic stimulus package that includes interest rate cuts, liquidity injections, and a reduction in the required reserve ratio to mitigate the economic impact of the ongoing trade war with the United States.

These measures were announced just before important trade negotiations this week between U.S. Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier Han Lifan.

The main measures include:

- Cutting the 7-day repo rate (short-term loans between banks and the central bank) by an additional 0.10%, down to 1.40% (effective from May 8)

- Reducing the required reserve ratio by an additional 0.50%, releasing approximately 1 trillion yuan (138 billion USD) in liquidity

- Supporting businesses affected by tariffs, increasing investment in the stock market through insurance companies, and implementing targeted lending tools for the technology sector, elderly care, and consumer goods.