Trade dispute with US a political challenge for China's Xi

In this Wednesday, May 8, 2019, photo, a worker drives an electric cart past a display featuring the U.S. and Chinese flags in a special trade zone in Qingdao in eastern China's Shandong province. China said Thursday it will retaliate if President Donald Trump goes ahead with more tariff hikes in a fight over technology and trade, ratcheting up tensions ahead of negotiations in Washington. (Chinatopix via AP)
FILE - In this April 27, 2019, file photo, Chinese President Xi Jinping waves as he arrives for a press conference at the closing of the Belt and Road Forum at Yanqi Lake on the outskirts of Beijing. The tariff war between Washington and Beijing poses one of the biggest challenges yet for Chinese President Xi Jinping, potentially exposing his political vulnerabilities at a time when the Chinese economy is already slowing. (AP Photo/Mark Schiefelbein, File)

BEIJING — The tariff war between Washington and Beijing poses one of the biggest challenges yet for Chinese President Xi Jinping, potentially exposing his political vulnerabilities at a time when the Chinese economy is already slowing.

Xi needs to balance standing firm against U.S. pressure with the increasing urgency to reach a deal that would relieve battered exporters who have long underpinned growth and job creation, particularly outside the major cities.

The U.S. effort to win concessions from China on strategic industrial policies has put Xi's own prestige on the line. It also has cast into question the ruling Communist Party's social contract with the Chinese people: keeping authoritarian, one-party rule and ruling class privileges in exchange for delivering robust economic growth, better living standards and a higher global profile for China.

You may also interested in

China's electric vehicle industry shaken by...

Sep 13, 2016

China's electric vehicle industry, a flagship for Beijing's technology ambitions, has been rocked...

Global markets mixed after Wall Street loss

Dec 23, 2016

Asian markets are mostly lower while Europe has gained in early trading ahead of the Christmas...

China starts 2017 engulfed by smog, issues...

Jan 2, 2017

Beijing and other cities across northern and central China are shrouded in thick smog, prompting...

Asian shares mixed as investors consider latest...

Jan 5, 2017

Asian stock indexes mixed as investors assess latest Fed meeting minutes; Japan shares slip as yen...

'One China principle' not negotiable, China tells...

Jan 16, 2017

Responding to remarks by Donald Trump, China's Foreign Ministry says the country's "one-China...

Subscribe To Our Newsletter