BEIJING: On Friday (Apr 25), China’s leadership committed to enhancing support for the economy and opposing “unilateral bullying” in global trade, indirectly criticizing the significant tariffs recently set by U.S. President Donald Trump.
The two largest economies in the world are currently involved in a serious trade conflict that has unsettled markets and led major manufacturers to rethink their supply strategies.
During a meeting of the Chinese Communist Party’s principal decision-making group, which included President Xi Jinping, leaders recognized that “the influence of external shocks is growing,” as reported by state news agency Xinhua.
They also expressed their intention to “collaborate with the international community to actively support multilateralism and reject unilateral bullying tactics,” said Xinhua.
This intense trade conflict is occurring at a time when China’s economy is facing challenges from ongoing troubles in the property sector and a hesitance among consumers to spend.
In the Politburo meeting, leaders discussed various domestic economic concerns and stressed the importance of “boosting consumption to drive economic growth,” according to Xinhua.
They also advocated for measures to raise incomes and “strongly promote service consumption,” in addition to applying key interest rate cuts at “suitable moments.”
Economists indicate that for the Chinese economy to maintain growth in the years ahead, it will need to rely more on domestic consumption.
Beijing aims for an annual growth rate of five percent this year, although experts view this target as quite ambitious.
Last year, China experienced record exports, which served as a critical source of economic activity amid persistent domestic challenges in the property market and deflationary pressures.
Since Trump resumed office in January, he has implemented 10 percent tariffs on most trading partners.
However, China has been particularly affected, with numerous products facing tariffs as high as 145 percent. In retaliation, Beijing has imposed new tariffs of 125 percent on U.S. goods.
