A PARTY journal said Saturday that the country may experience near-term pain from trade friction with the United States, including a negative impact on financial stability, but China’s stable growth trend would not change.

A commentary in the Qiushi, or Seeking Truth, warned that trade and economic friction between China and Washington could undermine “China’s economic growth, financial stability, trade and investment, employment and people’s livelihoods,” particularly in industries exposed to tariff action by the United States.

“But at the same time, we must see that the fundamentals of China’s economic development have not changed. In particular, China’s economic structure has been significantly improved in recent years, which has effectively improved its ability to withstand external shocks.”

The United States had “provoked” these frictions, but China would accelerate research and development of core technologies, optimize its industrial structure, promote market diversification, and strengthen support provided by domestic demand to “turn bad into good,” the commentary said.

It said that China’s macroeconomic management had “sufficient policy space” to counter negative impacts, with fiscal policies potentially playing a “greater role in expanding domestic demand and restructuring.”

“Unblocking the transmission mechanism of monetary policy and guiding funds to invest in the real economy, particularly small and micro-enterprises, can alleviate the problem of difficult or expensive financing and strengthen the ability of the financial industry and the real economy to withstand risks,” it said.

“Over time, Sino-U.S. economic and trade frictions will surely continue to develop in a direction favorable to China,” it said.(SD-Agencies)