Xi's real test is not Trump's trade war
Published: 4/30/2025

While US President Donald Trump's trade war tactics have not significantly impacted Chinese traders, President Xi Jinping faces challenges within China's struggling economy, including a housing crisis, job insecurity, and an aging population. The situation is further complicated by a lack of consumer spending and concerns about the pension system and job opportunities. Xi aims to turn these obstacles into opportunities by boosting domestic spending and exploring new markets, like South East Asia and Africa, to reduce dependence on US trade. The success of Xi's economic vision will be determined by internal policies and global diplomacy decisions, rather than external pressures from Trump's tariffs.