TMTPOST -- China's central bank and top financial regulators announced a sweeping stimulus package on Wednesday, slashing key interest rates and lowering bank reserve requirements in a bid to revive flagging economic momentum.

People’s Bank of China Governor Pan Gongsheng said at a press conference that the central bank will cut the seven-day reverse repurchase rate by 10 basis points to 1.4% from 1.5%. This move is expected to drag down the loan prime rate — China’s main policy benchmark — by a similar margin.

In a further step to inject liquidity into the system, the central bank will reduce the reserve requirement ratio (RRR) by 50 basis points. The cut is set to release roughly 1 trillion yuan ($138.6 billion) into the financial system, Pan added.

Officials from the National Financial Regulatory Administration and the China Securities Regulatory Commission joined Pan at the briefing, underscoring a coordinated push to support the economy.

The announcement came just hours after Beijing confirmed that Vice Premier He Lifeng will meet U.S. Treasury Secretary Scott Bessent in Switzerland later this week for talks on tariffs and broader trade issues — signaling a potential thaw in U.S.-China relations.

These will be the first official trade discussions since Washington, under President Donald Trump, hiked tariffs on Chinese goods to 145%, triggering a tit-for-tat response from Beijing with 125% duties on U.S. imports.

The upcoming talks may mark a turning point in the long-running trade standoff that has roiled global markets and dampened cross-border commerce between the world's two largest economies.