China's premier vows more proactive macroeconomic policies amid 'external shocks'

BEIJING (Reuters) - China needs to implement more proactive macroeconomic policies and roll them out in a timely manner as "external shocks" have put pressures to China's economic stabilisation, Premier Li Qiang said on Wednesday, according to state media.

During a symposium with economists and entrepreneurs, Li stressed that the country's economic work in the second quarter is especially important and all work must be stepped up and more forceful.

"(We should) respond to the uncertainties of the external environment with strong and effective policies," Li said, according to a report by Xinhua news agency.

The release did not mention tariffs or the United States.

China on Wednesday hit back at Trump singling out the world's second-largest economy for increased tariffs of over 100% by raising its own duties on American products with an extra 50%, deepening the trade war between the two economic superpowers.

Reuters on Wednesday reported that China's top leaders plan to convene a meeting as early as Wednesday to discuss measures to boost the economy and stabilise the capital markets, citing people with knowledge of the matter.

Hailing an upward trend of economic operations in the first quarter, Li said that "we must be soberly aware that external shocks have put some pressures on the smooth operation of the economy."

"We have fully assessed this and are prepared to deal with various uncertainties," he added.

Li called for greater efforts to stabilise jobs, boost incomes and release more potential in services consumption, said the Xinhua report.

"If we can handle our own affairs well, we will be able to turn crises into opportunities," he added.

China should also stimulate business vitality and further resolve financing difficulties for companies, Li said, calling for better environment for business development.

Analysts said Beijing is feeling cornered by Trump's intensifying tariff assault on China and any country that buys or assembles Chinese goods.

Citing rising external risks, Citi on Wednesday cut China's 2025 GDP growth forecast to 4.2% from 4.7% prior, well below the government's growth target of "around 5%."

(Reporting by Ellen Zhang, Ethan Wang and Ryan Woo; Editing by Andrew Cawthorne and Toby Chopra)

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