Welcome to the 250th edition of Trade War.
At the annual “Two Sessions” in Beijing, calls to boost demand dominate, with references to “consumption” outnumbering “technology” in work report. Worried by China’s sclerotic economy, officials set deficit target of 4%, the highest rate in 30 years, with GDP at around 5 percent, the same as in 2024. And policymakers likely to adopt a “negative industrial policy” to curb excessive production in industries like EVs, says a former central bank advisor.
Chinese working in artificial intelligence are being told to avoid traveling abroad including to the U.S. over national security concerns. And Washington is likely to ban AI sensation DeepSeek.
Premier Li Qiang issues call to fight neijuan, or “involution” and combat “rat race competition” and price-slashing amongst companies. Beijing aims to create 12 million urban jobs and keep overall unemployment at 5.5 percent in 2025. And China’s high-tech firms a source of national pride but generate few jobs.
Notable/In depth ~
Support for private companies under Xi Jinping “expedient rather than ideological”
Trump administration upheaval feels like Cultural Revolution for some
Chief of Germany’s far-right AfD lived in China for years and speaks Chinese
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