Xi Jinping Warns of No Winners in Trade War as China Struggles to Meet Growth Targets
Chinese President Xi Jinping has warned that there will be “no winners” in a trade war with the United States, calling such conflicts, including tariff and technology wars, contrary to historical trends and economic principles. Speaking in Beijing on Tuesday, Xi emphasized that China is committed to dialogue with the U.S., aiming to manage differences and foster stable, healthy relations.
Xi’s comments come amid economic challenges as China targets a growth rate of around 5% for 2024, despite sluggish domestic consumption, high unemployment, and the ongoing crisis in the property sector. Official data released on Tuesday revealed that while China’s exports rose 6.7% year-on-year in November, it was below the expected 8.7%, signaling continued economic pressures. This marks a slowdown compared to the previous month’s strong 12.7% increase.
The trade relationship between China and the U.S. has been strained since former President Donald Trump initiated a trade war during his tenure, accusing China of unfair trade practices. Trump has vowed to impose further tariffs after his return to office in January, heightening concerns of an escalation in trade tensions.
Despite these challenges, analysts suggest that China’s export growth in 2024 could still help the country meet its growth target, with some suggesting that foreign buyers may have been frontloading orders to avoid future tariffs. However, the data also highlights weakening domestic demand, as imports dropped 3.9% in November.
As China prepares for important economic meetings this week, investors are awaiting details of any new fiscal or monetary policies to support consumption and counter the domestic slowdown.
