Xi says China’s economy should adapt to external changes

Chinese President Xi Jinping. File
| Photo Credit: Reuters

Chinese President Xi Jinping called on Wednesday (April 30, 2025) for action to adjust to changes in the international environment as the country drafts economic plans for the next five years, State-run Xinhua reported.

U.S. President Donald Trump’s global trade war has shaken financial markets and stoked fears of a recession, as escalating tit-for-tat tariffs between the world’s two largest economies threaten to disrupt supply chains and a wide range of industries.

“It’s important to take a forward-looking view of changes in the international landscape and their impact on China,” Xinhua quoted Mr. Xi as saying at a symposium in Shanghai on economic and social development during the 15th five-year plan period from 2026 to 2030.

“The country must adjust and optimise its economic structure accordingly,” said Mr. Xi, who did not mention the ongoing trade war with the United States.

Objectives and tasks for the 2026-2030 period should be rationally defined, with clear approaches and measures, and objectives must undergo in-depth analysis and validation to ensure scientific accuracy and timely realisation, Mr. Xi said.

China’s top policymakers have pledged to support firms and workers most affected by the impact of triple-digit U.S. tariffs and urged the country to prepare for worst-case scenarios.

China has set an ambitious 2025 growth target of “around 5%”, although analysts believe it may be increasingly difficult to achieve in the face of the hefty U.S. tariffs.

Developing new productive forces suited to local conditions must be given a more prominent strategic position during the next five years, Mr. Xi said.

China will effectively stabilise the economy and will take measures to stabilise employment, firms, markets and expectations, Xinhua also quoted Mr. Xi as saying.

China should pay more attention to coordinating development and security, considering internal and external risks and challenges in a holistic manner, Mr. Xi said.

China will study and roll out a batch of balanced and accessible policy measures for people’s livelihoods, Mr. Xi added.