China Chronicles: Trump 2.0 headwinds for Chinese economy

In 2024, China was reeling from a downturn in the real-estate sector, local government debt, weak consumer confidence. With household consumption low, Beijing is pushing for more exports and greater investment in manufacturing. A glut in supply of goods has compelled exporters to reduce prices, eating into profit margins, and fanning trade disputes. While President Xi Jinping announced that China achieved its growth target of “around 5%” in 2024, the outlook is not so optimistic. Economists predict that China’s growth rate will be 4.4% in 2025, but the World Bank recently forecast 4.5%. What are the challenges in store for the Chinese economy in 2025 with the re-emergence of Donald Trump.