China’s Xi Warns of ‘No Winners’ in US Trade War Amid Economic Challenges
Chinese President Xi Jinping has cautioned that a trade war with the United States would yield “no winners” and emphasized China’s commitment to achieving its economic growth targets for the year. Xi made the remarks on Tuesday during a meeting in Beijing with leaders of multilateral financial institutions, as reported by state broadcaster CCTV.
Xi’s warning comes amid heightened tensions ahead of former US President Donald Trump’s return to the White House next month. During his first term, Trump imposed sweeping tariffs on Chinese goods, citing alleged intellectual property theft and unfair trade practices. He has pledged to escalate these measures after his January 20 inauguration, further straining bilateral relations as China grapples with a fragile economic recovery.
“Tariff wars, trade wars, and technology wars go against historical trends and economic rules, and there will be no winners,” Xi said. He reaffirmed Beijing’s willingness to maintain dialogue with Washington, expand cooperation, and manage differences to promote stable and sustainable relations.
Despite external pressures, Xi expressed confidence in China’s ability to achieve its 2024 growth target of around 5%. This optimism comes as the country faces sluggish domestic consumption, high unemployment, and a prolonged property sector crisis.
China’s export performance has provided a rare bright spot for the economy this year, with overseas shipments rising 6.7% year-on-year in November to $312.3 billion. However, the growth was slower than anticipated and marked a decline from October’s 12.7% surge. Analysts have attributed the recent export gains to foreign buyers accelerating orders in anticipation of new tariffs under Trump’s administration.
Imports, on the other hand, fell by 3.9% in November, a sharper decline than expected, reflecting weak domestic demand. The disappointing data underscores the need for stronger policy measures, with China’s top leadership convening this week in Beijing to outline economic plans for 2025.
The Politburo, China’s highest decision-making body, has already called for “vigorous” support for consumption and a loosening of monetary policy. Analysts are closely watching for specific fiscal measures to address domestic economic challenges, particularly in boosting consumer spending.
Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, suggested that upcoming meetings on economic policy could provide clarity on fiscal strategies. Meanwhile, observers remain cautious about the impact of US-China trade tensions on the global economy as Beijing seeks to navigate both internal and external challenges.
