China warns it is preparing for extreme scenarios

China's top leaders on Friday urged the international community to oppose "unilateral bullying " and stressed the importance of reviving domestic consumption , at a time when trade tensions with the United States threaten Chinese exports.

The Political Bureau of the Communist Party of China (CPC), the tight-knit circle of top leaders led by President Xi Jinping, held a meeting dedicated to the economy, state news agency Xinhua reported.

The leaders indirectly addressed the trade offensive launched by US President Donald Trump, which has sparked a fierce trade war with Beijing.

China must "work with the international community to actively uphold multilateralism and oppose unilateral bullying practices," members of the CCP's Political Bureau stated, according to Xinhua.

The trade war unleashed by Trump raised additional tariffs to 145% on Chinese goods entering the United States, and in response, China imposed 125% on American goods.

These tensions could have a serious impact on Chinese growth , which in recent years has been driven by exports in the face of a slowdown in domestic consumption .

- Criticism of deep-sea mining -

In this context, the members of the Political Bureau announced their intention to "vigorously develop consumption in services and strengthen its role in the dynamics of economic growth ."

In an unusual statement, they also called for a cut in key interest rates "at the most opportune time," confirming signals previously sent by the People's Bank of China .

For its part, the Ministry of Commerce stressed on Friday the need to strengthen preparations.

"It is necessary to raise political awareness , adopt a systemic approach, consolidate reflections based on red lines and extreme scenarios, with a strong focus on preventing and mitigating trade risks," he warned in a statement.

China also reacted to Trump's decision to approve deep-sea mining , both domestic and international.

This decision represents a challenge to the International Seabed Authority (ISBA), a United Nations-affiliated body that has jurisdiction over the high seabed under agreements that Washington has never ratified.

"The US authorization (...) violates international law and harms the overall interests of the international community," said Chinese Foreign Ministry spokesman Guo Jiakun in response to an AFP question.

- Equal conditions -

While most of the countries affected by US tariffs have entered into negotiations with Washington, Beijing has declared itself ready to "fight to the bitter end," although it remains "open" to possible talks on equal terms .

But to absorb the impact of escalating tensions and achieve their growth target of "around 5%" by 2025, Chinese leaders need to find new drivers of growth , economists warn.

"The Politburo meeting shows that the government is prepared to deploy new policies if the economy is hit by external shocks," Zhiwei Zhang said in a statement.

"The party prefers to take its time to observe and assess the magnitude and timing of the trade impact," Zhiwei Zhang, economist at Pinpoint Asset Management .

But "Beijing does not appear to be in a hurry to launch a massive stimulus at this point," the expert added, noting that no new stimulus measures were announced at the meeting.

Business and market circles remain focused on the possibility of a deal between the world's two largest economies , while the Trump administration has suspended most of its additional tariffs on other U.S. trading partners.

On Thursday, a spokesperson for the Chinese Ministry of Commerce stated that "there are currently no economic or trade negotiations between China and the United States." But a few hours later, Trump claimed that he had "held meetings with China ."

Citing sources close to the matter, Chinese trade outlet Caijing revealed on Friday that Beijing is considering exempting certain US products , such as semiconductors, from additional tariffs .

The Chinese Ministry of Commerce did not respond to an AFP request for comment.

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