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China Prepares for Economic Confrontation with the United States

As China’s 20th Central Committee concluded its Fourth Plenum, Le Monde reported that Beijing is stepping up economic preparations for a more direct confrontation with the United States. The strategy confirmed at the meeting prioritizes economic “self-sufficiency” over the next five years, while issues such as industrial overcapacity and youth unemployment have been relegated to secondary importance.

The Chinese Communist Party (CCP) has long favored maritime metaphors in its rhetoric, and recent statements suggest that Beijing expects turbulent times ahead. The Central Committee declared that the nation must be ready to face “strong winds, giant waves, and even violent storms,” showing the courage to overcome a host of difficulties, risks, and challenges with “historical initiative.”

China’s economic and political systems remain deeply rooted in state planning. Under President Xi Jinping’s leadership, the plenum confirmed the country’s 15th Five-Year Plan, which lays out strategic goals through 2030. The document devotes significant attention to military modernization, implying heightened competition with the United States—though Washington is not mentioned by name.

Since Xi came to power thirteen years ago, preparing for this rivalry has been a central theme of his governance. Growing tensions with Washington have only strengthened his confidence in the current course, even as it marks a break from four decades of reform and opening. Reducing reliance on the U.S. and its allies has become a cornerstone of national policy, with the plenum communiqué emphasizing the need for “greater self-reliance in science and technology.”

Since the onset of the tariff war launched by President Trump in April, the confrontation between Beijing and Washington has deepened. China has curbed exports of rare earth elements—strategic metals it largely dominates—and suspended imports of American soybeans, targeting Midwestern farmers. Through these measures, Beijing seeks to pressure the Trump administration into easing export bans on advanced AI chips that China still cannot manufacture domestically. Barring further diplomatic deterioration, Xi and Trump may meet at the APEC summit in South Korea from October 31 to November 1.

Despite mounting challenges, China’s leadership remains committed to achieving “socialist modernization” by 2035, viewing the current decade as decisive. Yet Beijing acknowledges persistent economic headwinds, including surging youth unemployment and sluggish domestic demand. The party has pledged to maintain industrial capacity at “appropriate levels” while simultaneously consolidating China’s position as a global manufacturing powerhouse—a balancing act that exposes the inherent contradictions of its economic strategy.

Source: Radio France International, October 24, 2025
https://rfi.my/C7h4