Xi Pushes for Free Trade and Economic Stability amid Challenges from Trump and Putin

President Xi Jinping has advocated for a peaceful world with fewer trade barriers during two global summits, aiming to shift his attention to strengthening China’s economy. However, challenges from figures like Donald Trump and Vladimir Putin may complicate these ambitions.

During global summits in South America, Xi urged several leaders to uphold the international free trade system, as China faces two economic challenges: Trump’s threat to raise tariffs on Chinese goods by 60%, and Putin’s easing nuclear weapon use rules, escalating tensions.

Xi has been promoting a message of calm, urging the world to avoid drastic actions that could destabilize trade. However, Neil Thomas, a Chinese politics analyst, stated that China is positioning itself as a reasonable advocate of economic globalization and the international order, contrasting itself with the US, which it sees as a disruptor to global stability, particularly in the eyes of third-party nations.

Currently, China’s manufacturing sector is driving exports and supporting the struggling economy. However, Trump’s tariffs could threaten GDP, destabilize the economy, and potentially prompt other nations to follow the U.S.’s lead, a scenario that raised concerns for China.

Xi has been addressing these concerns by urging leaders at the APEC summit and G-20 to “tear down the walls” blocking trade and investment, and to “oppose unilateralism and protectionism.” Goldman Sachs expects China to introduce new stimulus measures in response to Trump’s tariffs, with China’s Finance Minister Lan Fo’an promising action next year.

Aside from economic concerns, Xi received a warm welcome from several world leaders, including Claudia Sheinbaum of Mexico, Gabriel Boric of Chile, and Javier Milei of Argentina. However, tensions rose with US allies and partners, particularly the UK, when Prime Minister Keir Starmer raised concerns about human rights in Taiwan, prompting a stern response from Chinese officials.

Regarding the war in Ukraine, Xi avoided direct comments but broke his silence during discussions with U.S. President Joe Biden. Xi declared China’s stance against conflict and instability on the Korean Peninsula and emphasized that the country will not remain passive if its strategic security and core interests are under threat.

Analyst Patricia M. Kim noted that while Xi’s comments reflect frustration with Russia, North Korea, the U.S., and its allies, China remains largely sidelined in these conflicts. Still, she asserts that China will always prioritize avoiding conflict on its own doorstep.