FT learned about the reduction of China's key interest rate to help the economy amid tariffs

China lowered its benchmark interest rate to 1.4% and reduced the amount of money that banks need to hold as reserves to support the economy in the face of a trade war with the United States. This was reported on May 7 by the Financial Times (FT) newspaper, citing a statement by Pan Gosheng, Governor of the People's Bank of China.

"China will reduce the reserve requirement ratio for banks by 0.5% and the seven—day repurchase rate to 1.4% from 1.5% to free up 1 trillion yuan ($138 billion) of long-term liquidity for the banking system," he stressed.

It is indicated that the People's Bank of China has also reduced the reserve requirement ratio for companies engaged in financial leasing and car loans from 5 to 0, which has freed up capital, as well as improved their creditworthiness.

"The cost of loans under the state housing purchase program will be reduced to 2.6% to meet the urgent housing needs of residents and help stabilize the real estate market," Goshen said.

Trade Warrior: How new US duties will affect the global economy

Donald Trump announced the introduction of fees for all products supplied to the United States.

Earlier, on April 27, the South China Morning Post (SCMP) newspaper reported that Chinese companies were moving their production to the United States in order to avoid high tariffs. According to Zhu Ning, the head of a consulting firm that helps Chinese enterprises partially move production to the United States, his company has received at least 100 requests to move business from China to the United States over the past four months.

On April 9, Trump announced that the United States would immediately raise trade duties on China to 125%. On the same day, the Chinese authorities, in turn, decided to raise duties on imported goods from the United States to 84% as a mirror measure. On April 10, this figure reached 145%.