Beijing (Web Desk): Chinese President Xi Jinping has warned that there would be ‘no winners’ in a trade war with the United States (US), stressing that escalating tensions through tariffs and trade disputes goes against economic principles and historical trends.
He emphasized that China is open to continued dialogue with the US, aiming to strengthen cooperation, manage differences, and ensure that bilateral relations develop in a stable and sustainable direction.
Despite ongoing challenges, President Xi expressed confidence that China would meet its growth target of around 5% for the year.
This optimism comes amid sluggish domestic consumption, high unemployment, and a prolonged property sector crisis.
Recently released data showed that while China’s exports rose by 6.7% in November compared to the previous year, the growth rate was slower than expected, and much lower than the strong performance seen in October.
The growth in exports has been one of the few bright spots for China’s economy, which continues to struggle with weak domestic demand and investor concerns surrounding the property market.
Imports, on the other hand, saw a significant decline of 3.9%, extending a trend from the previous month and far worse than economists had anticipated.
Analysts suggest that some of the recent rise in exports may be due to foreign buyers rushing to purchase goods before any potential tariff increases under the incoming US administration.
This has led to speculation that export momentum may slow once these purchases are completed unless the outcome of US-China tariff talks is unexpectedly favourable.
China's leadership is closely monitoring the situation, with key meetings planned this week to discuss economic policies for the coming year.
While the Politburo has called for stronger support for domestic consumption and looser monetary policies in 2025, investors are awaiting more specific details, particularly regarding fiscal measures aimed at boosting consumer spending.
