China’s leadership has committed to intensifying efforts to support the national economy and stand against “unilateral bullying” in global trade. This pledge subtly critiques the tariffs recently imposed by U.S. President Donald Trump, as the two largest economies engage in a tense trade conflict that has shaken markets and led many manufacturers to reconsider their supply chains.
During a recent meeting of the Chinese Communist Party’s central decision-making body, which focused on economic strategy and was attended by President Xi Jinping, top officials acknowledged that “external shocks” are increasingly impacting China’s economy, according to the state-run Xinhua news agency. They expressed the need to “work with the international community to support multilateralism and counter unilateral bullying,” Xinhua reported.
This trade war comes at a challenging time for China’s economy, which is struggling with ongoing issues in the property sector and weak consumer demand. The Politburo meeting also focused on domestic economic measures, including boosting consumption to drive growth. Leaders emphasized the need to enhance incomes, develop service consumption, and implement key interest rate cuts when appropriate.
Economists suggest that China must rely more on domestic consumption to sustain its economic growth in the years ahead. Despite targeting a growth rate of 5% for this year, experts have raised concerns that the goal may be overly ambitious. Last year, China achieved record exports, which served as a vital counterbalance to the challenges in the property sector and ongoing deflationary pressures.
Since Trump’s return to the White House in January, most trading partners have faced new 10% tariffs. However, China has been hit hardest, with many of its products facing tariffs as high as 145%. In response, Beijing has implemented retaliatory tariffs of 125% on U.S. goods.
The Politburo meeting signals that China’s government is prepared to introduce new policies to respond to these external pressures, although analysts like Zhiwei Zhang, President of Pinpoint Asset Management, noted that Beijing is not rushing into large-scale stimulus measures. “It will take time to assess the timing and extent of the trade shock,” Zhang wrote.
In recent days, there have been conflicting reports about potential trade negotiations aimed at easing tariffs. A spokesperson from China’s Ministry of Commerce stated that there are currently no active economic talks between the U.S. and China. However, U.S. President Trump later contradicted this, stating that meetings with China are ongoing. Additionally, Chinese financial news outlet Caijing reported that China is considering exempting certain U.S. semiconductor products from the latest round of tariffs, although the Ministry of Commerce has not confirmed this.
AFP
