US-China trade war hotspots could put fire in Beijing’s belly: scholars
News Summary
Amid renewed US-China trade tensions, Chinese scholars suggest that the trade conflict could serve as a common cause to rally the country, especially ahead of the upcoming Fourth Plenum of the Communist Party's Central Committee and a new five-year plan. Yang Jianwen, a senior economic researcher at the Shanghai Academy of Social Sciences, noted that pressure, whether internal or external, has the potential to foster unity, reflecting China's national character where external pressure transforms into motivation. Wang Dan, China director for Eurasia Group, stated that China views the latest escalation as initiated by the US and will respond with calibrated, reciprocal actions. This sets a tone for the Fourth Plenum, indicating China will emphasize a long-term, steady strategy, refusing to yield to US pressure or alter its economic plans. The latest battleground is the shipping sector, with both sides imposing port fees on each other's vessels starting Tuesday. Beijing also announced sanctions on five US-based subsidiaries of South Korean shipping giant Hanwha Ocean, viewing their actions as collaboration with American efforts to constrain China's maritime and shipbuilding industries.
Background
In 2025, with Donald J. Trump re-elected as US President, US-China relations remain fraught, and trade conflict has reignited after months of negotiations and a temporary truce. The earlier trade war peaked in April, followed by a brief lull, but punitive actions such as economic sanctions and export controls persisted. Later this month, from October 20 to 23, the Communist Party of China will convene its pivotal Fourth Plenum of the Central Committee. This meeting typically deliberates major policies and strategic directions, such as outlining a new five-year plan. The escalation of the trade war at this critical juncture will significantly influence China's internal agenda and external policy stance.
In-Depth AI Insights
What are the deeper strategic implications of China's narrative of strengthening national unity amidst escalating US-China trade tensions, particularly ahead of the Fourth Plenum? - This narrative likely serves a dual domestic and international purpose. Domestically, it aims to consolidate CCP leadership by transforming external pressure into patriotism and a drive for national rejuvenation, preparing the populace for potential economic hardships accompanying the trade conflict. - Internationally, it signals to the US and its allies that Beijing will not yield on core interests. Despite economic sanctions and technological blockades, China will adhere to its long-term development strategy, including self-reliance in critical technologies and industries. - This unity rhetoric also helps build public consensus and legitimacy for policies likely to emerge from the Fourth Plenum, which are expected to focus on enhancing domestic self-sufficiency and technological innovation. How will China's