Xi urges officials to stay calm as US raises pressure on China

Key Points

  • Xi Jinping urged Chinese officials to remain composed amid domestic and international challenges, signaling a measured response to Trump's trade restrictions.
  • The Trump administration has escalated actions against China, including restrictions on tech and energy sectors, urging Mexico to impose tariffs, and targeting China's shipbuilding dominance.
  • China has responded with strategic patience, aiming to avoid major economic blowback while signaling readiness to retaliate if necessary.

Summary

In response to the Trump administration's new trade and investment restrictions, Chinese President Xi Jinping has called for a composed approach among Chinese officials. This comes as the U.S. has intensified its measures against China, including urging Mexico to impose tariffs on Chinese imports and targeting China's dominance in shipbuilding. Xi's comments reflect a strategy of strategic patience, similar to China's initial response during Trump's first term, but with a more experienced and prepared stance. Despite the rising tensions, both countries are maintaining communication, with recent high-level contacts indicating a desire to manage the relationship delicately. Xi also emphasized the need for social stability and economic recovery, highlighting efforts to restore confidence in the private sector amidst economic slowdowns and public unrest. The ongoing trade frictions have global implications, affecting investor confidence and market stability, with experts suggesting that a more stable US-China trade relationship could spur further gains in the Chinese market.

yahoo
February 26, 2025
Stocks
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