The resilience of China’s leadership in the face of economic challenges was recently highlighted when the official ideological journal of the Chinese Communist Party (CCP) published a speech by President Xi Jinping. In this speech, Xi called for a period of protracted “struggle” to prioritize political security, self-reliance, and the superiority of Chinese-style modernization over Western ideals.
Despite the tumultuous economic conditions over the past 23 months, marked by record youth unemployment, deflationary pressures, stock market crashes, burst housing bubbles, and mounting debt, China’s leadership under Xi remains steadfast in their commitment to the established path. The delayed publication of Xi’s speech indicates a strong adherence to their course of action, even in the face of adversity.
As China’s National People’s Congress (NPC) convenes, it is evident that significant shifts in policy are unlikely. Premier Li Qiang’s annual Work Report reiterated previous growth targets and military spending figures, signaling a focus on stability rather than radical change. The NPC’s adherence to long-term goals emphasizes Beijing’s ability to prioritize strategic objectives over immediate concerns.
While the NPC may not unveil groundbreaking policies, the focus on boosting consumption, stabilizing the property market, attracting foreign investment, and enhancing supply chain self-sufficiency remains paramount. China’s response to U.S. tariffs reflects a measured approach, aiming to avoid escalating tensions while effectively managing trade conflicts.
President Trump’s threats of reciprocal tariffs add pressure to China’s commitment to self-reliance and technological advancement. Xi’s call for the tech sector to contribute to China’s growth underscores the importance of innovation in driving economic progress amidst external challenges.
Despite recent economic achievements, such as stock market rallies and technological breakthroughs, China must address underlying issues such as weak domestic consumption, structural economic problems, and public confidence in the economy. While fiscal measures and infrastructure investments are being implemented, analysts remain skeptical of their ability to stimulate growth and address fundamental economic issues effectively.
As Xi emphasizes the importance of “struggle,” it is essential for China to undertake a comprehensive examination of economic challenges to ensure sustained growth and stability. The path ahead may be challenging, but with strategic planning and decisive action, China can navigate through uncertainties and emerge stronger in the global economic landscape.
