Trade dispute with US a political challenge for China's Xi

FILE - In this April 27, 2019, file photo, Chinese President Xi Jinping waves as he arrives for a press conference at the closing of the Belt and Road Forum at Yanqi Lake on the outskirts of Beijing. The tariff war between Washington and Beijing poses one of the biggest challenges yet for Chinese President Xi Jinping, potentially exposing his political vulnerabilities at a time when the Chinese economy is already slowing. (AP Photo/Mark Schiefelbein, File)
In this Wednesday, May 8, 2019, photo, a worker drives an electric cart past a display featuring the U.S. and Chinese flags in a special trade zone in Qingdao in eastern China's Shandong province. China said Thursday it will retaliate if President Donald Trump goes ahead with more tariff hikes in a fight over technology and trade, ratcheting up tensions ahead of negotiations in Washington. (Chinatopix via AP)

BEIJING — The tariff war between Washington and Beijing poses one of the biggest challenges yet for Chinese President Xi Jinping, potentially exposing his political vulnerabilities at a time when the Chinese economy is already slowing.

Xi needs to balance standing firm against U.S. pressure with the increasing urgency to reach a deal that would relieve battered exporters who have long underpinned growth and job creation, particularly outside the major cities.

The U.S. effort to win concessions from China on strategic industrial policies has put Xi's own prestige on the line. It also has cast into question the ruling Communist Party's social contract with the Chinese people: keeping authoritarian, one-party rule and ruling class privileges in exchange for delivering robust economic growth, better living standards and a higher global profile for China.

People also read these

Asian shares mixed as investors consider latest Fed minutes

Jan 5, 2017

Asian stock indexes mixed as investors assess latest Fed meeting minutes; Japan shares slip as yen...

Asia shares falter as investors watch dollar, await job data

Jan 6, 2017

Asian shares are wavering as a weaker dollar discourages investors who are shying away from risky...

China exports shrink as Trump trade tensions loom

Jan 13, 2017

China's exports fell back into contraction again last month, signaling renewed weakness for the...

China's growth edges up but 2016 weakest year since 1990

Jan 20, 2017

China reports its economy picked up pace in the last quarter, though its full-year performance was...

Asian stocks decline after Wall Street falls

Feb 7, 2017

Asian stocks are lower after Wall Street declined and oil rebounded

AseanCoverage is a next-gen news site focusing exclusively on online news from South East Asia.

Contact us: sales[at]aseancoverage.com