BEIJING—China is trying to tariff-proof its economy by boosting consumption and investing in key industries, but analysts say it remains critically vulnerable to the economic storm triggered by Donald Trump’s 104-percent levies on its goods.
Beijing has vowed to “fight to the end” against Trump’s aggressive trade policy, with number two leader Li Qiang saying authorities were “fully confident” in the resilience of the Chinese economy.
But even before the tariffs hit, weakness in the post-Covid domestic market, rising unemployment and a long-running property crisis had all dampened consumption.
“The Chinese economy has been significantly weakened since Trump’s first term and can’t really withstand the impact of sustained high tariffs,” said Henry Gao, an expert on the Chinese economy and international trade law.
Overseas shipments had represented a rare bright spot last year, with the United States the top single country buyer of Chinese goods.
US figures put Chinese exports to the United States at around $440 billion in 2024, almost three times the $145 billion worth of imports. AFP