China’s Xi to showcase Shanghai’s strength amid US trade war tensions

Nevin Al Sukari - Sana'a - In his last trip to Shanghai in November 2023, Chinese President Xi Jinping used the visit to urge Shanghai to build on its strengths as an international financial centre and take a lead in technology. — Reuters pic

SHANGHAI, April 28 — Chinese President Xi Jinping will visit Shanghai this week, two sources said, showcasing his country’s main international financial hub at a time when the trade war with the US has raised the stakes for growth.

The trip to the city that also hosts Tesla’s biggest factory would build on increasingly bullish assurances from senior Chinese officials that the world’s second-largest economy can handle the hit from the 145 per cent tariffs imposed by US President Donald Trump, despite its reliance on exports.

The State Council Information Office, which handles media queries for the Chinese government, did not immediately respond to a request for comment on the statements by the sources familiar with plans for the trip.

Alfred Wu, a China expert at National University of Singapore, said Xi could use the visit to focus on recent successes in tech development after the launch earlier this year of Chinese artificial intelligence startup DeepSeek.

Wu said he did not expect Xi would speak publicly about the trade war’s impact. “Based on our observations of Xi, he would not want to show any weakness,” he said.

The International Monetary Fund slashed its growth forecasts for China, the United States and most of the world last week, citing the impact of US tariffs now at a 100-year high.

Since the first Trump presidency, China has reduced its dependence on the US market. But efforts by Beijing to encourage exporters to find local alternatives to the US market have fallen flat in the face of weak domestic demand.

After Trump announced sweeping tariffs earlier this month, China punched back with its own counter-tariffs and restrictions on trade in key materials including rare earths needed for industrial magnets.

The Trump administration has signalled an openness to de-escalating the trade showdown,but the two sides remain divided on fundamental issues.

Trump said last week he and Xi had spoken by phone and talks on tariffs were taking place. On Monday, China’s foreign ministry denied that, saying the two presidents “did not have a call recently”.

Tech, finance, jobs

In his last trip to Shanghai in November 2023, Xi used the visit to urge Shanghai to build on its strengths as an international financial centre and take a lead in technology.

At the time he also met with provinces representing an economic bloc China has dubbed the Yangtze River Economic Belt. The area comprises Shanghai and 10 other provinces and cities along the Yangtze River and is a key export hub which accounts for more than 40 per cent of China’s gross domestic product.

Eurasia Group’s China director Dan Wang said Xi could use his visit to Shanghai to push further globalization of the yuan and to encourage more overseas financing to support Chinese companies in going global.

Wang said it was also possible Xi would focus on manufacturing and employment given the stakes. “The job losses in the region could be substantial if they lose half of their US orders,” Wang said.

Chinese officials have said the economy can weather the trade war, while also suggesting that more policy support could be coming if needed.

Zhao Chenxin, the vice chair of the National Development and Reform Commission, told a news conference on Monday that Beijing remained “fully confident” China would hit its economic growth target of around 5 per cent for 2025.

Zhao said China could secure enough soybeans, corn and other grains without any imports from the US He said China could also secure the energy it needed without buying from the US. — Reuters