Web Desk — As tensions between China and the United States continue to escalate, Chinese President Xi Jinping has warned that a trade war would result in no winners. Despite the ongoing challenges, Xi remains confident that China will meet its economic growth target for 2024. His comments come amid the backdrop of sluggish domestic consumption and concerns over the post-pandemic economic recovery, further complicated by the looming threat of higher tariffs under U.S. President-elect Donald Trump.

Xi Jinping Warns of No Winners in China-U.S. Trade War

No Winners in Trade Wars: Chinese President Xi Jinping warned that a trade war with the United States would result in no winners, urging cooperation instead of conflict. He stated that tariff wars and technology wars go against historical trends and economic rules.
Xi’s Commitment to Growth: Despite economic challenges, Xi affirmed China’s full confidence in meeting its 2024 growth target of around five percent. He made these remarks during a meeting with heads of multilateral financial institutions in Beijing.

U.S. Trade Tensions Under Trump

Donald Trump’s Trade War: U.S. President-elect Donald Trump has pledged to impose higher tariffs on China when he takes office on January 20. His first term was marked by escalating tensions with Beijing over intellectual property theft and unfair trade practices.
Post-Pandemic Economic Struggles: As China faces a shaky post-pandemic recovery, the looming trade war could exacerbate its economic challenges.

Economic Challenges in China

Sluggish Exports and Imports: While China’s exports grew by 6.7% year-on-year to $312.3 billion, it was slower than expected (8.7%). Imports also dropped by 3.9%, reflecting weaker domestic demand.
The Impact of the Property Sector: Domestic consumption continues to suffer due to high unemployment and an ongoing crisis in the property sector. These factors have dampened investor confidence.

Export Growth Despite Challenges

Exports as a Bright Spot: Exports have been a rare positive in China’s economy, particularly as domestic consumption struggles. However, the slower growth rate in exports indicates a potential softening in momentum.
Surge in Exports Before Potential Tariffs: Analysts suggest that the recent export surge may be driven by foreign buyers rushing to secure Chinese goods before any potential new tariffs under Trump’s administration.

Economic Data Highlights

Export Growth: Exports rose by 6.7% in November, but fell short of the expected 8.7% growth. From January to November, exports grew by 5.4%.
Import Decline: A 3.9% drop in imports suggests continuing weakness in domestic consumer spending, which has been a persistent issue for China.

China’s Economic Planning for 2025

Focus on Consumption: The Politburo, China’s top decision-making body, has called for “vigorous” support for consumption and a loosening of monetary policy for 2025.
Anticipated Fiscal Policies: Investors are closely watching China’s upcoming economic meetings, hoping for concrete policy announcements, especially regarding fiscal support and measures to boost domestic consumption.