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(Bloomberg) -- Chinese President Xi Jinping called on officials to stay composed in the face of domestic and global challenges, signaling Beijing will take a measured approach to the Trump administration’s new trade and investment restrictions.
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China “must enhance its political capabilities and calmly respond to challenges brought about by changes in the domestic and international situation,” Xi told top officials including Politburo and State Council party members, according to a Xinhua News Agency report on Wednesday.
The comments coincide with President Donald Trump taking his most sweeping actions yet against China in his second term, raising the risk that ties may soon worsen.
Washington has ramped up pressure by restricting Beijing’s spending in US strategic sectors like tech and energy, urging Mexico to impose its own tariffs on Chinese imports, and pushing for fees on commercial ships made in China to counter its dominance in shipbuilding.
The White House is also working on tougher semiconductor restrictions and urging key allies to escalate their own limits on China’s chip industry, aiming to curb Beijing’s tech advancements, Bloomberg News reported. Rising tensions have already rattled global investors and dragged down Chinese stocks.
“America has, in my opinion, been itching for a fight with China — China hasn’t taken the bait,” Peter Alexander, managing director of Shanghai-based consultancy Z-Ben Advisors, told Bloomberg TV on Wednesday.
“But you know, there are sort of two realities that we’re heading towards,” he said. “I’m hoping it’s the one where an agreement can be made.”
For now, both countries appear keen to maintain a delicate relationship. Chinese Vice Premier He Lifeng spoke with Treasury Secretary Scott Bessent on Friday — the second high-level contact since Trump took office — indicating ongoing communication. Trump has also highlighted his personal ties with Xi and said last week that a new trade deal with China was possible.
Xi’s call for calm echoes China’s early approach to the trade war during Trump’s first term.
At the time, Beijing emphasized strategic patience and aimed to ease tensions through negotiations. But as the pressure grew, China shifted its position, adopting a more assertive stance with a set of tactics known as “wolf warrior” diplomacy, which reflected Beijing’s growing frustration with Washington’s unpredictability.