China can expand domestic demand through various policies including rebates for swapping old vehicles, appliances and factory equipment for new ones, Zhao said, forecasting that demand for equipment upgrades will exceed 5 trillion yuan ($34.8 billion) a year.

Beijing is confident of hitting its 5% economic growth target this year despite the U.S. and China imposing hefty levies on each other’s exports.

President Donald Trump’s tariff onslaught has roiled Washington and Wall Street for nearly a month. If the trade war persists, the next upheaval will hit much closer to home.