Saturday, March 29, 2025
In response to continuing economic challenges and the effects of the US trade war, Xi Jinping has revealed a comprehensive strategy aimed at bolstering China’s economy. During a meeting of the Politburo on Friday, officials discussed the country’s growing difficulties, which include a housing sector crisis, rising youth unemployment, and the repercussions of US tariffs on Chinese exports.
The meeting, which was attended by key government figures, concluded that China’s economy showed positive signs in 2025, with increasing social confidence, but external shocks, particularly from the US, had intensified. The statement emphasized that “bottom-line thinking” should be strengthened, suggesting a shift towards more proactive emergency preparedness and economic work to address these ongoing pressures.
Key Measures Proposed by China’s Government
The Politburo outlined several proposals to strengthen the domestic economy and protect both citizens and businesses from the effects of Trump’s tariffs. Among the measures discussed were plans to increase unemployment insurance, raise the incomes of low and middle earners, and develop the service sector to encourage higher consumption. The strategy also includes efforts to support businesses in financial distress and improve the integration of domestic and international trade.
China is also looking to accelerate the development of a new real estate model, enhance urban renewal projects, and boost housing stock to address its housing crisis.
Tariff Exemptions and Efforts to Ease Tensions
Reports indicate that China may consider removing tariffs on certain US products, including semiconductors and medical equipment, which have been heavily taxed under the current trade restrictions. These exemptions, while still under discussion, suggest a possible effort to de-escalate the trade war. Additionally, stock markets across Asia rose after news of these potential tariff reductions, signaling optimism in the business community.
US companies and trade representatives in China, including Michael Hart of the American Chamber of Commerce, have welcomed the news of potential tariff reviews, noting that Chinese authorities have inquired about the US products they import but cannot source elsewhere. This signals a potential mutual interest in reducing the economic strain caused by the tariffs.
Ongoing Discrepancies Between Trump and China on Trade Talks
While President Trump has repeatedly claimed that he is in ongoing talks with China about tariffs, Chinese officials have denied any such negotiations. Trump insisted that discussions were taking place, but China’s Foreign Ministry reiterated that there were “currently no economic and trade negotiations” between the two countries. This contradiction underscores the complexities and continuing tensions in US-China trade relations.
Despite these mixed messages, experts suggest that China’s new economic measures are a sign that Beijing is preparing for a prolonged trade conflict, with plans to focus on domestic growth while navigating the external economic challenges.
