BEIJING (AP) — Chinese banks have been told by the government to lend more to entrepreneurs to help shore up flagging economic growth amid an escalating trade dispute with Washington.
The central bank said Sunday it had released 750 billion yuan ($109 billion) for additional lending by reducing bank reserve requirements by 1 percent. It said the money was for small enterprises — the official term for private companies that generate China's new jobs and wealth.
The dispute with the U.S. is adding to downward pressure on an economy that already was forecast to cool after Beijing tightened lending controls to rein in a debt boom.
The Asian Development Bank says China's economy is expected to expand at a 6.6 percent annual pace this year but slow to 6.3 percent in 2019.