China advances economic strategy amidst hostile US trade climate

Department of Research, Studies and International News 28-04-2025

Chinese President Xi Jinping has unveiled a strategic economic roadmap aimed at reinforcing China’s resilience in the face of escalating external pressures, particularly those arising from ongoing trade tensions with the United States. During a recent Politburo meeting, top officials convened to assess the nation’s economic outlook and propose comprehensive policy measures to ensure stability and sustained growth.

According to a statement released by Xinhua, China’s economy in 2025 is exhibiting a “positive trend” with improving societal confidence. Nevertheless, the leadership acknowledged the increasing weight of external shocks, most notably, the lingering impact of U.S.-imposed tariffs originating from the Trump administration.

The Politburo emphasized the necessity of what it described as “bottom-line thinking,” urging the formulation of robust contingency plans and proactive economic governance. In a direct counter to unilateral protectionist practices, China reaffirmed its commitment to multilateral cooperation and firmly opposed hegemonic trade bullying.

In response to mounting global economic headwinds, the Chinese leadership outlined a broad set of measures intended to shield its domestic industries and support vulnerable populations. These include the expansion of unemployment insurance, targeted support for low and middle-income households, development of the service sector, and strategies to invigorate domestic consumption. Special attention was given to enhancing access to financing for struggling enterprises and promoting the integration of domestic and international trade flows.

In line with China’s ongoing efforts to modernize its urban infrastructure, the government also vowed to expedite housing reform, increase available housing stock, and accelerate urban renewal projects. These initiatives align with a broader push for a more sustainable and inclusive economic model that prioritizes internal circulation amid uncertain global conditions.

Analysts have interpreted these moves as a clear signal that Beijing views the current international economic environment as increasingly antagonistic. Wen-ti Sung, a scholar at the Atlantic Council, noted that China appears prepared to withstand prolonged economic confrontation by focusing on strengthening domestic demand and leveraging fiscal stimulus.

Amid these internal policy shifts, reports have surfaced indicating that Chinese authorities are evaluating the possibility of reducing or removing tariffs on select American imports, particularly in sectors where alternative sources are limited. Products such as semiconductors, medical devices, and certain industrial chemicals are reportedly under consideration for exemption from the 125% tariff imposed on U.S. goods.

This policy calibration coincides with market optimism, as Asia-Pacific stock indices responded positively to the news. The American Chamber of Commerce in China has acknowledged inquiries from Chinese agencies regarding essential U.S. imports, suggesting a pragmatic approach from Beijing in managing trade realities without compromising national interests.

Despite these developments, conflicting narratives persist between Washington and Beijing regarding the status of trade negotiations. While U.S. officials, including former President Trump, have hinted at ongoing talks, China’s foreign ministry has reiterated that no official discussions are currently underway.

As China advances its internal economic agenda and reasserts its global trade posture, its emphasis on multilateralism and domestic resilience highlights a strategic and measured response to external provocation, one rooted in sovereignty, stability, and long-term national interest.