A wide package of measures aimed at giving a new impetus to the Chinese economy in view of critical trade talks with the US has been announced by the Xi Jing government, with the ultimate goal of boosting Beijing’s negotiating position.

In particular, China has made wide interest rate cuts and a decrease in the amount of reserves that Chinese banks are obliged to maintain in an effort to “breathe” the Chinese economy that has “swallowed” the second trade war with the US, as Bloomberg reports.

The People’s Bank of China reduced the interest rate on seven -day reverse reproaches (RRR) to 1.4% from 1.5%, as the Chinese Central Bank Commander Pan Pagsedng has announced on Wednesday.

The Chinese central banker also announced that the amount of the required reserves that the country’s financial institutions must be held by 0.5%will be reduced.

Pan made the announcements a few hours after China revealed that the first commercial talks of its officials with Donald Trump’s government representatives, after imposing 145% duties on most Chinese goods, will take place on the weekend.

The Commander of the Laiki Bank of China made the announcement of the measures with the chairman of the Chinese Securities and Exchange Commission, Win King, and the head of the National Financial Institutions, Lee Junze, giving a picture of the coordinator.

“The abusive use of US duties has seriously disturbed the global economic and commercial order of things,” said the chairman of the Chinese Securities and Exchange Commission, adding: “The production and operation of listed companies has been inevitably or indirectly influenced.”

The above measures are included in a package of a total of 10 interventions announced by Pan which also includes interest rates reductions in a series of refinancing and loans.

As Pan pointed out, only a decrease in the amount of mandatory reserves for banks will release a long -term liquidity of about 1 trillion. Wan ($ 139 billion).

The reduction in weekly reverse repo interest rates will come into force on Thursday, with reduced reserves in force a week later, according to two separate announcements by the Chinese Popular Bank.

Among the measures announced by the President of the Central Bank of China are also:

– The resolution of the compulsory reserves for car funding companies and leasing companies from 5% previously.

– The decrease of 0.25% of interest rates for structural refinancing tools of commercial banks and pawn supplementary loans.

– The decrease of 0.25% of the borrowing rate from the Housing Welfare Fund.

– The increase in quota for technology refinance loans by $ 300 billion to $ 800 billion to boost the upgrading of equipment.

– The creation of a refinance tool for the consumption and care of the elderly of 500 billion yuan.

– The subsidy through the refinancing tool for agriculture, small and medium -sized enterprises will expand by 300 billion yuan.

– The merger of two equity support tools for a total quota of $ 800 billion.

– The creation of a debt risk distribution tool, which will allow the Central Bank of China to provide low cost refinancing funds to encourage purchases of technology bond markets.

The commander of the Laiki Bank of China reiterated that the “moderate relaxation” of monetary policy would translate into abundant liquidity and ensure that the business be funded at a relatively low cost.