Chinese President Xi Jinping has announced a comprehensive plan to bolster China’s economy amid continuing challenges, including the ongoing trade war with the United States, which has weighed heavily on the country’s financial landscape since the pandemic.
In a key meeting of the politburo on Friday, officials discussed measures to tackle persistent issues such as the housing sector crisis, youth unemployment, and the economic fallout from US tariffs.
According to a readout of the meeting published by state news agency Xinhua, while the economy showed a “positive trend” in 2025, external shocks, including trade tensions with Washington, continue to impact China’s recovery.
“We must strengthen bottom-line thinking, fully prepare emergency plans, and do a solid job in economic work,” the readout stated, highlighting the government's resolve to manage the impact of US sanctions.
The politburo's statement also reaffirmed China’s commitment to multilateralism, in contrast to the US's “unilateral bullying practices” under former President Donald Trump. The readout added that Beijing intends to work with the international community to mitigate the impact of these trade barriers.
The Chinese government outlined a series of measures designed to support domestic businesses and citizens, including expanding unemployment insurance payouts, boosting middle and low-income wages, and fostering the growth of the service industry.
There were also plans to increase consumption and enhance financing support for struggling enterprises.
In addition, the government proposed accelerating the development of a new real estate model, expanding housing stock, and implementing city renewal and urban renovation programs. These actions aim to stimulate demand in the domestic market as Beijing seeks to cushion the economic blow of the trade war.
The news comes in the wake of a potential trade-war between China and the United States. US President Trump recently stated that tariffs on Chinese imports would be “substantially” reduced but would not be completely eliminated.
Despite these signs of potential easing, the two governments have offered conflicting statements on the status of trade negotiations.
On Friday, China’s Foreign Ministry reiterated that no official talks are taking place between the US and China regarding tariffs. This contradicted Trump’s earlier claims that negotiations were ongoing.
“We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” Trump told reporters at the White House, though he did not specify who “they” referred to.
The trade war between the US and China has strained both economies, and the latest developments signal that both sides are looking for ways to ease tensions and find a path forward.
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