China pledged on Thursday to increase the budget deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate as it gears up for more trade tensions with the United States as Donald Trump returns to the White House.

One in three Americans are stockpiling daily necessities like toilet paper and non-perishable food out of fear that President-elect Donald Trump’s pledge to add tariffs to imported goods will lead to higher prices,

The tone of the Politburo statement suggests that China won't lower its growth ambitions for 2025, says Zong Liang, chief researcher at state-owned Bank of China. But it also suggests that China is likely to set an initial budget deficit target of around 4%, its highest ever.

In one of their most dovish statements in more than a decade, Chinese leaders signalled on Monday they are ready to deploy whatever stimulus is needed to counter the impact of expected U.S. trade tariffs on next year's economic growth.

Even as the risk of another trade war looms as Donald Trump prepares for his second term, China stresses ‘dialogue and coordination’ with US.