China announced new stimulus measures on Wednesday to support its economy ahead of high-stakes trade talks with the United States this weekend in Switzerland, Reuters reported.

The central bank will lower its benchmark seven-day reverse repo rate by 10 basis points to 1.40 percent on May 8 and drop the reserve requirement ratio by 50 basis points on May 15, pumping 1trn yuan ($138bn) of liquidity.

The move comes as statistics showed China's factory activity dropped at the quickest rate in 16 months, raising concerns about tariffs, job losses, and deflation, according to Reuters.

Regulators also promised targeted assistance, such as increased stock market access for insurers, tariff relief, and new low-cost lending tools for technology, aged care, and small enterprises.