China charts resilient course amid global trade uncertainty

This aerial drone photo shows a view of the container terminal of Nanjing Port in east China's Jiangsu Province, April 16, 2025. [Photo/Xinhua]

By Matteo Giovannini

China's proactive stance in navigating the complexities of the global economy is underscored by two major events held in Beijing on April 25: the 2025 National Trade Conflict Response Working Conference and a key meeting of the Political Bureau of the Communist Party of China's Central Committee.

These twin gatherings reflect not only Beijing's resolve to tackle mounting external pressures, but also a sophisticated strategy aimed at reinforcing industrial security, ensuring supply chain stability, and maintaining the momentum of high-quality foreign trade growth.

The backdrop to these meetings is the intensifying geopolitical competition, continued fragmentation in global trade rules, and a resurgence of protectionist sentiment in some parts of the world. Against this setting, China has chosen not to retreat inward, but to respond with precision, pragmatism, and policy coherence.

The trade conflict response conference brought together key government bodies, trade policy institutions, and representatives from major industrial sectors and laid out a coordinated response mechanism to minimize disruptions from trade frictions. One key outcome was the establishment of a more robust early warning system for trade risks that would enable industries and enterprises to receive timely intelligence and policy support.

Other measures announced include the acceleration of free trade agreement negotiations with emerging markets, optimization of export tax rebate policies, and streamlining customs clearance procedures. In tandem, the authorities pledged increased financial and legal support to Chinese companies facing discriminatory trade practices abroad.

The conference also highlighted plans to further support cross-border e-commerce and bonded zone development, recognizing their roles as engines of trade diversification and platforms for small and medium-sized enterprises to reach global markets.

China's trade conflict response signals a shift from reactive defense to proactive adjustment. This approach is emblematic of the broader strategy of institutional opening up. It sends a clear message: China remains committed to deepening integration with the global economy, even as it fortifies itself against unilateral pressures.

The Political Bureau meeting, chaired by Xi Jinping, general secretary of the CPC Central Committee, reinforced this strategic direction with a strong emphasis on securing the country's industrial and supply chains. It emphasized the dual importance of resilience and innovation with policies to support the reshoring and upgrading of critical industries.

Enhancing the coordination between the central and local governments to prevent redundant construction and ensure efficient resource allocation was a focus. The rollout of national-level industrial clusters in key regions such as the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area will act as anchors for technological diffusion and international collaboration.

Additionally, the integration of digital technologies into trade logistics, via blockchain, artificial intelligence and 5G-enabled infrastructure, was highlighted to enhance China's position in global value chains.

China's foreign trade is undergoing a structural transformation, shifting from volume-based expansion to quality-driven development. The share of high-tech and green products in China's export mix has continued to grow, with electric vehicles, solar cells, and lithium-ion batteries accounting for a rising proportion of outbound trade.

Staff check equipment at the Daqing Oilfield in northeast China's Heilongjiang Province, April 14, 2025. [Photo/Xinhua]

This trend illustrates not only a shift in comparative advantage, but also the growing maturity of China's innovation ecosystem. In 2024, R&D spending reached a record 2.68 percent of GDP, reflecting a deep commitment to homegrown scientific and technological breakthroughs.

China's recent announcements have generated confidence for overseas investors. Despite the turbulent global climate, China attracted over $100 billion in foreign direct investment in 2024, with services, advanced manufacturing, and green tech drawing the lion's share. This trend is continuing into 2025, buoyed by policy clarity and efforts to create a fairer, more transparent business environment.

The structural upgrading of the Chinese economy is increasingly visible in macroeconomic indicators. Industrial production remains robust, consumer confidence is recovering steadily, and the services sector in 2024 accounted for 56.7 percent of GDP, up from 52.8 percent in 2022.

The two events collectively represent more than tactical responses to trade tensions, they are a reaffirmation of China's strategic blueprint for long-term development. Through policy continuity, institutional innovation, and international outreach, China is positioning itself not just as a participant in global trade, but as a key shaper of its future rules and norms.

What emerges is a picture of an economy that refuses to be reactive or insular. Instead, China is demonstrating that resilience is not just about enduring hardship; it is about transforming it into opportunity through reform, openness, and coordination.

As global uncertainties persist, such proactive governance and strategic foresight offer a roadmap not only for China's continued ascent, but also for the stability of the global economy at large.

Matteo Giovannini, a special commentator on current affairs for CGTN, is a finance professional at the Industrial and Commercial Bank of China, a non-resident associate fellow at the Center for China and Globalization, and a member of the Global Young Leaders Dialogue.