China to help companies hit by US tariffs

China’s Ministry of Commerce (MOFCOM) said on Monday that it might take several actions to help Chinese companies hurt by the tit-for-tat trade tariffs between China and the US, including using revenue from tariffs on US goods.

Responding to a question about how China would reduce damage to Chinese companies from the trade friction, a spokesperson for the MOFCOM said that China has “fully considered” alternatives to US imports as well as the overall impact on trade and investment, while preparing for countermeasures to the US tariffs.

The unidentified spokesperson added that China will continue to evaluate the impact on different companies, and “tax revenues from the countermeasures will be mainly used to help companies and employees impacted.”

“If some companies have been impacted relatively seriously, it is recommended to report to the relevant local government departments,” the spokesperson said.

In responding to US tariffs on $34 billion worth of Chinese products, China also imposed a 25-percent tariff on $34 billion worth of US goods, including agricultural goods and cars.

To reduce the impact of these tariffs, China will also encourage companies to increase imports of agricultural goods such as soybeans, seafood and cars from other countries and regions.

As for investment, the MOFCOM spokesperson said that China will push forward previously announced measures, including further easing restrictions on foreign investment and improving intellectual property protection, to create a better investment environment.