China’s leaders gather to hash out Trump tariff battle plans

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China’s leadership calls for closed -door meetings next week to protect the sick economy from plans to protect the sick economy from prices and trade risks by US President Donald Trump.

The ‘two sessions’ gatherings of the country’s parliament and the top advisory agency are mainly speaking, the decisions of rubber -sealing by the Communist Party are hidden while openness and accountability are hidden. But they provide an extraordinary glimpse of leadership priorities and concerns, facing the largest trade partner and strategic rival in China – China’s largest trading partner and strategic rival.

Prior to the meeting, Chinese President Xi Jinping acknowledged that the country’s economy was facing “numerous difficulties”, which was written in an article published in the ruling Communist Party Journal this week.

But XI also emphasized that “long -term growth conditions and overall positive pace has not changed.” The eyes of all will be at the inauguration of the National People’s Congress Parliament on Wednesday, where Premier Lee Kyang will provide economic growth goals for 2025, and will give insights on how much is expected about Beijing as well as new military spending.

Analysts, polling by AFP, have widely agreed that Beijing, like 2024, will set a goal of a 5.0 % increase. Many people have seen that China is a competition as a purposeful purpose, and says the ongoing hesitation of Beijing’s economy to injure such massive stimulant observers.

In Moody’s analysis, Harry Murphy Cruz, head of China and Australia economics, told AFP, “Until bad domestic spending, youth unemployment and raising prices, the economy is having a difficult time.” “None of these challenges will have a headache for officials. Jointly, they are a migraine.

More unexpected

Possibly the top of the agenda is Trump, which has just abolished the international order in the White House just a month ago and has proved even more unexpected than his first term. The US president imposed an additional 10 % of the duties on products imported from China last month and is more at risk.

The move could affect hundreds of billions of dollars of trade, and if the Republican pursues more customs Levies threats, it may increase. The US-led push-Democrat that is also being headed by the former Biden administration to squeeze China out of international supply chains for high-tech chips and other sensitive technology.

This effort has pursued Beijing’s technical self -reliance policy, which is part of a broader move to develop “new quality productive forces” by China leadership, which hopes it can promote development.

Last May, Beijing increased the country’s largest chip investment fund by more than $ 47 billion-the third phase of the effort, which jointly led the first two stages. Asia Society analysts Neil Thomas and Jing Kayan said in a note, “Beijing is betting that a large -scale party -led pressure pressure can create a new economic growth driver for research, innovation, commercial, manufacturing and digitalization.”

He added that China hopes it can “change the property of the non -immortal sector and achieve productive skills that help reduce issues related to debt, settlements and the West.” Analysts also said that Trump’s pressure could encourage Beijing to increase the support of the seeing economy last year – cutting interest rates, reduce local government debt pressure and increase subsidies for domestic goods.

“We expect China to increase policy support in response to excessive external shock than the United States,” UBS chief economist Wang Tao told AFP. He added that “it will be eliminated at the end of the year … Will there be extra prices or other external shocks, or should the property plumage be worsened”, adding.

Property crisis

Another important problem is weak domestic consumption. The demand has been a long -running drag on the second largest economy in the world, which has given a defense spiral that has kept prices stubborn.

Analysts expect the policy makers to expand the scope of a consumer goods trading program launched last year, allowing buyers to exchange older appliances and other items. “It can affect immediately, temporarily, retail expenses,” said Louis Lu of Oxford Economics.