Greater policy aid to cushion trade impact

Finance minister pledges proactive fiscal measures to assist industries

When trade tensions escalated between China and the United States, policymakers turned back to macroeconomic policies to defend against negative impacts on economic growth, especially with regard to fiscal policy.

Trade tariffs are no longer the only catalyst of intensifying China-US economic friction. Last week, the United States said it would add Chinese telecommunications giant Huawei and its 70 affiliates to an Entity List, which would bar them from buying components from US companies without prior US government approval. The move has raised concerns of an enduring confrontation, and analysts worry it could damage Huawei's business.