U.S today: Donald Trump is gradually losing the China war, members of the stat……..more
Xi Jinping has announced a plan to counter China’s continuing economic problems and the impact of the US trade war, as reports swirl that it could drop tariffs on some US products, including semiconductors.
Friday’s meeting of the politburo was convened to discuss China’s economy, which since the pandemic has faced difficulties fuelled by a housing sector crisis, youth unemployment and Donald Trump’s tariffs on all Chinese imports to the US.
A readout of the meeting published by the official state media outlet Xinhua said China’s economy had showed a “positive trend” with increasing social confidence in 2025, but “the impact of external shocks has increased”.
“We must strengthen bottom-line thinking, fully prepare emergency plans and do a solid job in economic work,” itIn a reference to Trump’s global tariffs, the readout said Beijing would “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices”.
he US president has again insisted that Xi has called him to discuss the border taxes, despite Beijing denying any contact between the two countries over their bitter trade dispute.
In an interview conducted on Tuesday with Time magazine and published on Friday, Trump repeated the claim but did not say when the call took place or specify what was discussed. “He’s called,” Trump said of Xi. “And I don’t think that’s a sign of weakness on his behalf.”
On Thursday, a spokesperson for China’s foreign affairs ministry, Guo Jiakun, said of the reports of talks: “None of that is Friday’s politburo readout proposed a series of interventions to bolster the domestic economy and protect people and businesses from the impact of Trump’s tariffs, including increasing unemployment insurance payouts. It promised to increase low and middle incomes, develop the service industry and boost consumption.
“We should take multiple measures to help enterprises in difficulties,” it said. “We should strengthen financing support. We should accelerate the integration of domestic and foreign trade.”
It stressed the need for more proactive macroeconomic policies, faster development of a new real estate model and increased housing stock, and “stepping up” city renewal programmes and urban renovatWen-ti Sung, a non-resident fellow at the Atlantic Council’s Global China Hub, said the politburo’s decisions showed Beijing “clearly views the international macroeconomic environment as hostile” and was willing to take on high domestic inflation to weather the tariffs.
“[This] hints that China will be digging into the trenches and is preparing for a long trade fight with Trump,” he said.
Sung said Beijing was “doubling down on boosting domestic demand” and bolstering fiscal stimulus as the international market showed no signs of significant improvement.
The meeting was held amid reports that Chinese authorities were considering a list of US products to exempt from the 125% tariffs imposed on all US imports. Earlier reports from Bloomberg and Reuters said medical equipment, semiconductors and some industrial chemicals such as ethane were being considered.ion.true.” said.
Leave a Reply