How Beijing plans to bounce against Trumps' prices

President of Chinas XI Jinping recently held a meeting With 40 leaders of multinational companies, including BMW and Astrazeneca.

Unlike Donald Trumps rhetoricXI told high -level leaders that globalization didn't go. XI tries to stimulate foreign investment In China, which has dropped in recent years and establishes new relationships that will compensate for Trump's prices on many Chinese products.

At the meeting of March 28, XI has promised to improve market access and assured business leaders that Communication routes Between them and the Chinese government are open.

XI hopes to rely on an anti-Trump rebound and inspire companies to support Beijing while some signs have emerged that the Chinese economy was doing a little better than expected at the beginning of 2025. Industrial production increased by 5.9% in January and February. Credit growth, which measures the amount of loans granted, also seems to be pick upsuggesting that companies could be growth in China.

Retail sales, which are a major economic marker indicating consumption expenditure, has increased by up to 4% In January and February of this year, compared to last year.

Beijing is also willing to create Other recovery packages to maintain the economic growth of Chinas, which could further increase consumer confidence.

But this is hampered by a real estate crisis who started in 2021. What followed was already high Local government debt This was exacerbated by the property crisis and high Unemployment of young people existed since 2023.

The big question is then what are the factors that could lead to a more floating perspective in the economic fortune of Chinas?

Beijing policy resolve

According to a Bloomberg Report, China is traditional on cheap loans and subsidies to stimulate the economic, manufacturing and property market economic sectors. However, these times are over.

The problem is that China has produced more goods for sale than people are not willing to buy. In the past, Beijing had on the West to buy its products, but with growing protectionism and imminent rates Inserting a divergence from Donald Trump, the American consumption of Chinese goods should fall.

What if another key market In the form of the EU was to be inspired by Trumps Economic Playbook and impose more prices on China, then the Chinese hope of sales in the West for economic growth may not materialize.

The safest way to stimulate sales is by domestic consumption. It is not easy because domestic Chinese expenditure remains relatively low to 40% of the country's GDPwhich is approximately 20% lower than the world average. And if Beijing wants prudent consumers spending in the middle of a Weak economic perspectivesIt must do more to increase consumer confidence.

Although China has done Introduce a stimulus package In September 2024, he resolved to do more. In a speech in early March 2025 in the Chinese Parliament, Chinese Prime Minister Li Qiang promised a Special action plan To vigorously increase interior consumption for 2025. Several weeks later, Li reiterated In the Chinese development forum, Beijing would deploy more stimulation packages when the need arose.

These insurances are likely to have helped to improve ambitious Level of approximately 5%, could report to Beijing trust And solve that the economy will improve.

Chinas Revolution

In the past, China was considered a Copycat Nation known for manufacturing ShanzaiOr false and hacked Products. This difficulty in innovating and dependence on conceptions of others education system imbued with heart learningand a top and down culture with a conformist approach.

This is why experts thought that China would find it difficult when the United States decided to introduce restrictions On semiconductor and Chinese access AI technologies. However, despite these restrictions, China has managed to develop a very competent AI model in the form of Deepseek, which was revealed at the start of this yearAnd immediately stimulated the Chinas image as an innovator.

Unlike other models of AI, Deepseek has apparently been made in a fraction the cost of other traditional AI models such as chatgpt, and can have a more efficient Coding diagram that allows faster problem solving. It prompted Donald Trump awakening for the American technological industry.

Many AI startups in China are now Replacing their commercial models To compete with Deepseek, after the general adoption of second technology. Like AI revolution in China could potentially reduce costs and thus Strengthening efficiency in the financial sector.

After the Trumps, returns to the Oval Office, world investors Investment opportunities elsewhere. It is not entirely surprising since Trumps Taps unpredictableAnd how new American rates have been applied to a host of American allies such as Mexico,, Canadaand the European Union.

While Trump takes an increasingly protectionist tone, China adopts the opposite approach. Trumps leaning on prices and contempt for the economic interest of the American allies could mean that Beijing may not need to do too much to attract more nations and businesses to consider turning to the Chinese markets.