Islamabad, Jan 8: Although the Chinese government addressed domestic economic issues, it also had to manage the complexities of its alliance with Russia on the international stage.
As China continues to maintain its pivotal role in the global economy, it may face challenges in key areas during 2025:
1. Renewed Hostility with the US
With Donald Trump taking office in January, Beijing’s most immediate concern will be the resurgence of an aggressive US policy.
Trump has already threatened to impose an additional 60% tariff on China and other countries. He has signaled his intention to continue the trade war initiated during his previous presidency.
The strained relationship with the US is a major challenge for China, but Beijing is not unprepared. It has learned lessons from the previous US trade war.
For instance, Chinese companies like Huawei have diversified into other sectors to reduce reliance on US markets and technology. Similarly, China is countering the US by implementing measures such as restricting the export of rare earth minerals.
In this way, Beijing is in a better position to fight a trade war than it was in 2017.
2. Global Technology Race
While tariffs will dominate the headlines, China will also pose stiff competition in the global technology race, creating challenges for the US.
Technology has become a key element in China’s plans as Beijing aims to increase exports, jobs, and production in this sector.
Restricting this sector remains a priority for the US, as evident in its efforts to limit Chinese access to semiconductor technology.
This is one of the new battlegrounds—not only to master critical technologies but also to set global standards for technology.
This is evident from what is called the “Beijing Effect,” where China seeks to establish standards for digital infrastructure, similar to how the European Union set data management and privacy standards with its General Data Protection Regulation (GDPR).
Such initiatives could potentially give China a strategic edge in the technology world.
3. EU Tariffs
China faces a similarly complex trade dispute with Europe, which has triggered a series of retaliatory tariff measures.
For example, in response to EU member states imposing restrictions on Chinese electric vehicle imports, Beijing has levied additional import tariffs on French brandy.
These tariffs come at a time when China has started establishing itself in technologies previously dominated by other countries.
The trade war with the EU could become a headache for Beijing, especially when coupled with recent discussions about NATO’s role in Asia.
This is particularly true if it leads to greater alignment between Brussels and Washington.
However, the EU’s strained relations with the US, rooted in hostilities established during Trump previous term, could work in China’s favor if it prompts the European bloc to seek alternative partners.
