The Chinese government is preparing to support an expanded private sector role in helping the Chinese economy cope with renewed trade wars (Business Brief No.4128 Full Ed.)

• Amid the escalating new round of trade wars, on February 17, 2025, President Xi Jinping met with executives from major private companies in China, with most of them from the “new productive forces”.
• The meeting is seen as a significant signal from the Chinese government in several aspects, including:

1.    The private sector may play a greater role in driving the Chinese economy.

2.    China’s counter-strategy may be to reduce its reliance on US technology, which would intensify technological competition between the two countries.

3.    The Chinese government has underscored its stance of prioritizing technology-related industries as a key force in driving the Chinese economy, replacing traditional sectors like real estate.

4.    The Chinese government’s tightening of regulations and rules in the private sector may have ended.

• More details may emerge from the National People's Congress in March 2025.