CHINA’S economy is likely to hit its growth target this year provided a bitter trade dispute with the United States does not worsen, and hence will not need “very big” stimulus measures to prop up growth, a central bank adviser said Monday.

“If the Sino-U.S. trade relationship does not deteriorate further, the possibility of keeping gross domestic product growth over 6 percent this year is rather big,” Ma Jun said.

Chinese leaders have set a growth target of 6-6.5 percent for 2019.

“There should be no need to take very big, new stimulus measures,” he said.

The United States and China agreed Saturday to restart trade talks after U.S. President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with China.

But China’s weak manufacturing readings in June, reflecting slowing momentum in a key sector driving growth, are likely to cast a shadow over the apparent progress U.S. and Chinese leaders made at the G20 summit in Japan.

The People’s Bank of China has already slashed the amount of cash banks must hold as reserve six times since early 2018 to help turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower.

Premier Li Keqiang raised expectations of more action last week by pledging measures to cut real interest rates on financing for small and micro firms.

The central bank has vowed not to adopt “flood-like” stimulus that analysts say could exacerbate debt risks. (SD-Agencies)