China’s 2025 Economic Playbook in a New Phase of Trade War
Yifei Zhu
Beijing’s economic targets for 2025 appear ambitious amid serious domestic and external challenges. This year’s plans show adjustments from previous years, focusing on domestic consumption, financial stability, and private sector support, where policy support is indeed essential. They also maintain continuity in technological advancement, reflecting Beijing’s enduring conviction that technology serves as the primary engine of economic growth. Meanwhile, Beijing has made extensive preparations for the greatest uncertainty of the year: the trade war. Are the proposed solutions sufficient to keep China on track? With Washington’s tariff increases and Beijing’s retaliatory measures now escalating into a full-scale trade war, a reassessment of China’s economic playbook has become urgent. This issue brief examines the problems facing the Chinese economy and evaluates Beijing’s proposed solutions, considering the latest developments. Although Beijing and Washington have recently agreed to a 90-day truce to ease trade tensions, the analysis and conclusions of this brief remain relevant and timely.
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