Tariffs and tumult have roiled China’s economy, so Beijing is taking extra precautions to ensure that it is not caught off guard during ‘trade order restructuring’
Amid erratic US tariff threats and with the world economy in flux, China’s top economic planner says that more economic monitoring and early-warning capabilities are needed.
The National Development and Reform Commission (NDRC) is soliciting studies to assess the impacts of US tariffs and to refine China’s existing monitoring indicators “in the context of global economic and trade order restructuring”.
It also plans to evaluate how non-tariff barriers of various countries might impact China’s economy, according to a notice published on its website in late June.
From the central bank to the commerce ministry, China already employs a vast system to monitor its economic health. However, the NDRC’s fresh push signals the desire for a more nuanced and forward-looking approach as it helps draft the country’s 2026-2030 development blueprint.
“This might need to be of higher frequency and more capable of reflecting the real economy,” said Shao Yu, director of the Shanghai Institution for Finance and Development.
Shao expects that changes to the economic-monitoring system will help China better navigate the volatility and competition that he expects to intensify in the future.
“While existing systems might focus on indicators such as trade balances and financial market volatility, future systems will likely dive deeper into supply-chain security, technology, and monetary stability,” he said.
In a separate notice, the NDRC called for research into factors affecting economic and trade relations with the European Union, while seeking policy recommendations for strengthening cooperation.
China’s economy displayed resilience as its gross domestic product rose by 5.4 per cent in the first quarter. The second-quarter reading is due to be released next week.
However, the huge uncertainties haunting the global economy continue to keep Beijing’s policymakers on high alert to external headwinds.
US President Donald Trump slapped high tariffs on 14 countries on Monday, and more are expected to be announced before August 1 – his new deadline to secure trade deals.
Chinese and US negotiators had reached a framework deal in May to scale back tit-for-tat tariffs that amounted to more than 100 per cent. The two countries also agreed during talks in London last month to drop export-control measures.
Tensions remain high despite the recent truce, especially as countries scramble to make deals with the US to avoid the reinstatement of tariffs.
The US lowered tariffs on Vietnam to 20 per cent in a new trade deal announced on Wednesday, with the exception of transshipped goods, and analysts warned that Beijing might view the move as a strategy to isolate China from critical supply chains.
Communist Party mouthpiece People’s Daily decried Washington’s tariffs on Tuesday.
“The US’ abuse of tariffs is a typical act of unilateral bullying that has severely impacted the normal international trade order and must be resolutely opposed,” said an editorial published in the publication.
