China Cuts Taxes to Protect Economy

China is looking for new ways to pump up its slowing economy as a trade war with the United States escalates. Beijing has announced a range of measures including tax cuts, infrastructure spending and new loans to business as its tries to reinvigorate economic growth, which has begun to slow in recent months, CNNMoney reported. The tax cuts for business are relatively small—worth about $10 billion—but they come on top of much bigger injections of funds into the banking system in recent weeks aimed at boosting activity. China is freeing up more than $100 billion to help its economy. The Chinese government said in a statement late Monday that the new stimulus was intended to help the country cope with “an uncertain external environment”. China says the United States has started a trade war by imposing tariffs on billions of dollars of its exports. It has responded with tariffs of its own on American products, drawing threats from President Donald Trump of much bigger retaliation to come.