China plans to step up economic adjustments to counter its slowing economy while providing adequate liquidity in the economy, the central bank said on Sunday.

The United States and China have been locked in an escalating trade war for more than a year, which has hit China’s already slowing economic growth.

The statement was posted on the official Twitter-like Weibo account of the Peoples’ Bank of China.

China will “continue to implement a prudent monetary policy and increase the strength of counter-cyclical measures”, the statement said.

It also said that China will improve channels for banking sector liquidity to flow into the real economy and will support capital raising measures by smaller banks, which have been hit by shrinking margins and increasing levels of soured debt. (Reuters)