Chinese President Xi Jinping leads the Communist Party's push for technological self-reliance as trade tensions with the U.S. intensify. Image: South China Morning Post.
(The Post News)– China’s Communist Party announced that it will speed up technological self-reliance, taking a more hawkish stance as tensions rise with the United States on semiconductors and high-technology exports.
The party issued the statement following a four-day Central Committee meeting that approved a draft 2026–2030 five-year development plan. The communique placed “rapid economic growth,” “national security,” and an “all-out green transformation” of the economy at the top of its agenda.
The Party said China faces “deep and complex” global changes and vowed to establish a “modern industrial system with advanced manufacturing as the backbone.” President Xi Jinping’s government aims to turn China into a world leader in science, technology, and clean energy.
Trade War Pressures and Economic Headwinds
Tensions between Beijing and Washington have intensified since President Donald Trump returned to the White House and reimposed high tariffs on Chinese imports. His administration has also tightened export controls on semiconductors and chipmaking equipment, restricting China’s access to important technology.
Trump thinks higher tariffs will result in American manufacturers returning home. Beijing, however, has looked to new markets for exports and inward innovation to offset U.S. pressure. It means China will require more from the U.S. to reach a deal, if a deal is to be had.
Gary Ng, Natixis’ senior economist, said,
Xi and Trump are to meet at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea next week to discuss trade and security. Trump recently indicated a potential “fair deal” and accepted an invitation to visit China early next year.
Xi’s leadership continues to prioritize advanced manufacturing, robotics, artificial intelligence, and renewable energy. China already leads global production in electric vehicles, wind, and solar power and now targets breakthroughs in quantum computing and AI.
“The communique shows more continuity than change,” said Xin Sun, a senior lecturer in Chinese and East Asian business at King’s College London. “Beijing’s long-term strategy still focuses on building a tech superpower.” The communique also renewed efforts to boost domestic demand and living standards, but analysts say those goals remain vague.
“China’s leadership remains conflicted between boosting consumption and protecting manufacturing dominance,” said Julian Evans-Pritchard of Capital Economics. “The priority clearly lies with industry.”
Beijing has rolled out measures to stimulate spending, such as subsidies on child care and consumer loans and trade-in programs for electric vehicles and appliances, but consumption has been slow to pick up. The economy grew 4.8% in the third quarter, and policymakers expect full-year growth of nearly 5%.
Rare Earths Give China Leverage in U.S. Rivalry
China holds a near-monopoly on rare earth production, essential for global defense and semiconductor industries. Analysts say it will take a decade or longer for the U.S. and allies to reduce dependence on Chinese supply chains.
Beijing imposed fresh curbs on rare earth exports last week, evoking a sharp response from Trump, who threatened to raise tariffs on Chinese goods to 100%. Despite all the rhetoric, however, there appears to be a willingness on both sides to avoid a complete trade breakdown.
The Central Committee meeting also reshuffled top military ranks, underscoring Xi’s ongoing anti-corruption campaign. General Zhang Shengmin, a senior officer in the People’s Liberation Army Rocket Force, became vice chair of the Central Military Commission. “The appointment highlights Xi’s focus on loyalty and discipline within the military,” said Sun.
Economists see Thursday’s announcement as a sign of policy consistency rather than reform. Xi’s government continues to rely on manufacturing and innovation to drive growth while confronting rising debt, weak consumption, and external pressure from Washington.
China’s growth model remains “vulnerable, high debt, low inflation, and export dependent,” according to Dan Wang, China director at the Eurasia Group. “But Beijing’s confidence in the resilience of its industry shows that it believes it can outlast U.S. pressure.”
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