China is keeping all its economic policy tools within reach as the trade war wit...
BEIJING - China is keeping all its economic policy tools within reach as the trade war with the United States gets longer and costlier, but still sees more aggressive action like interest rate cuts as a last resort should the dispute get uglier, policy sources say.
Barring a trade meltdown or other shock, the most likely options to boost growth in coming months include more fiscal spending and liquidity infusions by the central bank in various forms, sources said, building on similar steps over the past year. But a second source said the central bank could still cut the benchmark if economic conditions deteriorate sharply.
President Donald Trump said on Tuesday the United States still has a long way to go to conclude a trade deal with China but could impose tariffs on an additional $325 billion worth of Chinese goods if it needed to do so.
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