China’s top leaders are expected to meet as soon as Wednesday (Apr 9) to discuss measures to boost the economy and stabilise capital markets amid escalations in the trade war with the United States, Reuters reported, citing people familiar with the matter.

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Economists have warned that US President Donald Trump’s tariffs on the world’s second-largest economy could result in a decline of one to two per cent in the country’s growth, worsen industrial overcapacity, put domestic jobs at risk, and further fuel deflationary forces.

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The planned high-level meeting comes as 104 per cent tariffs on Chinese goods take effect on Wednesday (Apr 9) and marks the first one that became publicly known since Trump imposed reciprocal tariffs on China last week. 

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High-level meet

The top leaders who are expected to attend the meeting include senior officials from the State Council, or cabinet, as well as several government and regulatory bodies, reported Reuters, citing two anonymous sources.

Also read | China not backing down! Beijing hits back at US with 84% tariffs on all US goods from April 10, after Trump's 104% duty

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They added that top officials from the government bodies, including the People's Bank of China, the central bank, and the finance ministry, were also likely to attend the meeting. Officials of the commerce ministry, the National Financial Regulatory Administration (NFRA) and China Securities Regulatory Commission (CSRC) are also expected to be present at the meeting.

They will likely discuss measures to boost domestic consumption and support capital markets in China. The talks will likely include initiatives like making rebates on export tax more attractive for domestic companies, the sources said. Chinese state media are expected to report part of the meeting’s agenda, they said.

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China-US trade war

On Wednesday (Apr 9), China hit back at the US with 84 per cent tariffs on all American goods in response to the 104 per cent sweeping tariffs imposed by the US. The new Chinese levies are set to take effect on Thursday (Apr 10).

Also read | China's 'neighbourhood first' policy amid Trump tariffs: Xi Jinping advocates better ties with neighbours as 104 pc duties kick in

Earlier, China imposed a 34 per cent tariff on US goods following Trump’s announcement of “reciprocal tariffs” on April 2. Trump had warned China of withdrawing its retaliatory tariffs or the US would respond with an additional 50 per cent duties. However, China has vowed to fight back against the US president’s alleged “blackmail”.

(With inputs from agencies)