After witnessing the effects of a tumultuous trade war with the United States this year, China's top leaders have issued a directive to fortify the domestic economy against persistent or even heightened trade frictions. Analysts see the leadership's language after the central economic work conference as an admission that trade tensions are expected to endure and expand beyond the US, including to partners like the European Union.
Following the central economic work conference, China's leadership has emphasized the need to address trade frictions, with the use of the word “struggles” interpreted by analysts as Beijing's assessment that such tensions will endure and may extend beyond the US to partners like the European Union.
This year, China has endured a tumultuous trade war with the United States, prompting top leaders to issue directives aimed at bolstering the domestic economy's resilience against ongoing or intensified frictions. Analysts note that while “stabilising foreign trade” and “stabilising foreign investment” have been mentioned to varying degrees each year, their importance and urgency for 2026 remain as significant as in 2025. “Although ‘stabilising foreign trade’ and ‘stabilising foreign investment’ have been addressed to varying degrees each year … their importance and urgency [in 2026] remain no less significant than in 2025,” said economists led by Lian Ping, chairman of the China Chief Economists Forum, in a Friday note.
This dual strategy seeks to balance growth with resilience to navigate potential trade challenges. Beijing's assessment reflects a cautious approach to the global trade environment, especially amid lingering effects from the US trade war. Experts view this as a signal that China is gearing up for broader international trade pressures.
