BEIJING: China's financial market demonstrates high resilience and operates smoothly amid tariffs imposed by the United States, People's Bank of China (PBC) Deputy Governor Zou Lan said on Monday.

"Regarding China, the economy has started off well and continues to grow. The financial system remains sound and the financial market has shown high resilience and is running smoothly. The yuan's exchange rate against the dollar is around 7.3 yuan," Zou told a news conference, reported Sputnik/RIA Novosti.

At the same time, a significant increase in customs tariffs by the US triggered fluctuations in global financial markets and led to a fall in the dollar index, as well as caused a rise in US Treasury bond yields, the deputy governor said, adding that the decision also increased volatility in the US stock market and a reallocation of global asset portfolios between regions.

The new US tariff policy "has blatantly encroached on the legitimate rights and interests of various countries, caused serious damage to the rules-based multilateral governance system, seriously affected the global economic order and undermined the long-term sustainable growth of the world economy," Zou also said.

On April 2, US President Donald Trump signed an executive order that implemented reciprocal tariffs on imports from various countries. The base tariff rate was established at 10 per cent, with higher rates applied to 57 countries based on the US trade deficit with each specific nation.

On April 9, Trump declared that a baseline tariff of 10 per cent would be imposed for 90 days on over 75 countries that had not retaliated and had requested negotiations, excepting China. As the trade war progressed, US tariffs on Chinese goods hit 145 per cent, while China's tariffs on American imports reached 125 per cent.

--BERNAMA-SPUTNIK/RIA NOVOSTI