Chinese leaders today called the international community to oppose the “unilateral bullying” and underlined the importance of a recovery of domestic consumption while commercial tensions with USA threaten Chinese exports.
The limited cycle of the highest high -ranking Chinese leaders, including President Xi Jinping, today met at a quarterly meeting of the Chinese Communist Party, dedicated to the economy, according to the Chinese official news agency Xinhua. Chinese leaders indirectly turned against the US President Donald Trump, which caused a fierce trade bran de Ferr with Beijing.
China has to work with the international community “to actively support polymership and oppose unilateral bullying practices,” they said, according to Xinhua.
Donald Trump’s trade war has led to additional customs duties of 145% on Chinese products entering the US and impositioning with Pentecost in retaliation for additional 125% tariffs on US products imported into China.
These tensions may severely affect Chinese growth, the driving force of which are exports to a domestic consumption.
In this context, members of the Political Bureau have announced today that they want “to develop consumed services and to enhance the role of consumption in the dynamics of economic growth”, according to the Chinese State News Agency. In an unusual move, they also called for a reduction in the basic interest rates “at the most appropriate moments”, confirming the signals already given by the People’s Bank of China.
This session “took place five days earlier than last year,” said Jue, chief economist at the Economist Intelligence Unit, showing that “it is urgent for Beijing to respond quickly to a climate of extreme uncertainty”.
While the majority of countries targeted by US customs duties began negotiations with Washington, Beijing said it was ready to “fight to the end”, however maintaining “widespread doors” in talks.
However, in order to cope with the shock of a vicious cycle of tension and achieve their goal of “about 5%” in 2025, Chinese leaders need to find new driving forces, economists warn.
“The Political Bureau’s meeting shows that the government is ready to develop new policies if the economy is affected by external shocks,” Jijuy Jang, an economist at Pinpoint Asset Management, said in a memorandum.
However, “Beijing does not seem to be in a hurry to start a massive recovery at this stage,” the expert added, noting that the meeting did not “announce new recovery measures”.
The Chinese Communist Party “prefers to take time to observe and evaluate the area as well as the timetable of commercial shock,” he concluded.
Economic circles remain with the possibility of an agreement between the two largest economies in the world, as the Trump government has suspended most of its additional duties for other US trade partners, excluding China.
Yesterday, Thursday, a spokesman for the Chinese Ministry of Commerce said that “no financial and commercial negotiation is ongoing between China and the US.”
However, Donald Trump assured a few hours later that he “had meetings with China”.
Citing sources close to the case, the specialized Chinese Caijing media has revealed today that Beijing is considering the possibility of excluding some US products from its additional duties, such as semiconductors.
The Chinese Ministry of Commerce did not respond to AFP requests to comment, while a Chinese Foreign Ministry spokesman cited Reuters said today that it does not know the details of whether China is planning exceptions from duties for some US products.
Spokesman Guo Jiakun reiterated during the usual information of journalists that China and the US do not have any consultations or negotiations on tariffs.
“It takes time for trade negotiations between the US and other countries to go ahead,” Jiyy Jang said.
“This shows that customs duties will affect world trade and economies for at least several months,” he concluded.