LyrArc Article Gist
China's central bank reduces its reserve requirement ratio, required money set aside by commercial banks and not used for lending. It lowered by half percentage point to 13% the amount of reserves Chinese banks are required to set aside. As the economy has cooled recently with trade tensions with the U.S., China's growth has slowed to 6%. The move frees up $126 billion for lending. In a speech this week president Xi used the word "struggle" over a dozen times. The State Council has plans to allocate more money for vocational training, to expand railways construction. 

Analysts of S&P recently estimated China's economic growth over the next decade at 4.6% on average if the trade dispute gets to a stalemate, if trade dispute worsens it could drop to 3.7%.

The trade dispute has dampened the mood at China Development Forum in Beijing, with attendees saying the distrust between the U.S. and China is based on deep concerns about each other.

Besides the lending increase planned, the central government is pushing local governments to find projects to create jobs. Local governments fear this would worsen the already high debt burden they carry.