Top Chinese officials have reiterated their commitment to focusing on domestic affairs in the face of escalating trade tensions. Han Wenxiu, deputy director at the Chinese Communist Party’s central committee office for financial and economic affairs, highlighted the importance of ensuring the stable and healthy development of the real estate market, accelerating growth in emerging industries, and expanding domestic demand, particularly consumption. This strategy aligns with Chinese President Xi Jinping’s call to prioritize internal development and excel in domestic initiatives.
Trade tensions between the U.S. and China have intensified, with former President Donald Trump threatening significant tariffs on Chinese goods and the Biden administration increasing tariffs on specific products. The European Union has also joined in raising tariffs on Chinese-made goods. Despite these external pressures, Chinese officials remain steadfast in their commitment to deepening reform and opening up the economy further.
In the wake of a real estate slump and sluggish consumption, China’s GDP growth has faltered, prompting concerns about reaching annual targets. While exports have remained a key driver of growth, underlying issues within the real estate sector and subdued consumer spending have impacted overall economic performance. Efforts to bolster technological advancements have yet to fully mitigate the slowdown in these critical sectors.
Han acknowledged the systemic impact of the real estate sector on China’s economy and outlined measures to address the challenges. These include managing existing housing inventory, optimizing new construction projects, and ensuring timely delivery of pre-sold properties. Additionally, he emphasized the need for stronger and more effective macroeconomic policies to support economic stability and growth.
The recent Third Plenum meeting underscored the importance of improving the macroeconomic governance system and fostering integrated development between urban and rural areas. Chinese officials are focused on implementing these resolutions effectively to overcome economic challenges and sustain growth momentum. Han’s assurance of continued efforts to enhance economic policies reflects the government’s commitment to navigating uncertainties and driving sustainable development.
China’s strategic shift towards prioritizing domestic affairs amidst rising trade tensions reflects a proactive stance aimed at bolstering economic resilience and stability. By focusing on internal development, addressing key economic challenges, and implementing strategic reforms, China seeks to navigate the evolving global landscape while reinforcing its position as a major economic powerhouse.