Premier Li Qiang projects confidence in Beijing’s ability to support the economy

On Sunday, Premier Li Qiang spoke with Chinese businesses in Indonesia during his visit to the country.

Li’s message was clear: Beijing is prepared for further trade shocks and will respond with targeted, timely support – but only as needed.

Li highlighted Beijing’s measured approach:

• “We have made thorough preparations for external shocks and are gradually rolling out measures to stabilize employment and the economy.”

He also signaled an expansion of Beijing’s economic support playbook:

• “We are also studying and preparing new policy tools, including some unconventional measures, which will be introduced in a timely manner as the situation evolves.”

Translation: Beijing has solutions up its sleeve if a deal cannot be worked out with the US by the end of the tariff pause.

Get smart: Officials’ focus in the coming months will be on accelerating the deployment of the existing fiscal support package rather than introducing new policies.

Get smarter: By Q3, Beijing will likely have deployed most of its existing fiscal support.

• If economic data remains weak through Q2 and Q3, the likelihood of additional stimulus being introduced will rise significantly.

The big question: What does Li mean by "unconventional"?

• It could simply mean deploying familiar tools more aggressively or at new targets.
• But it might also hint at genuinely new policy measures, such as creating central rescue funds for the struggling property and stock markets, or introducing direct cash transfers to low-income households.