Xi Jinping of China will travel to Shanghai amid growing trade tensions with the United States

President Xi of China will travel to Shanghai with the goal of demonstrating his fortitude and resiliency in the face of growing trade pressure from the US.

During a time when the trade war with the United States has increased the stakes for growth, Chinese President Xi Jinping is scheduled to visit Shanghai this week, according to two sources.

The visit would bolster on senior Chinese officials’ increasingly optimistic claims that the world’s second-largest economy, despite its reliance on exports, can withstand the impact of US President Donald Trump’s 145% tariffs. The city also has Tesla’s largest manufacturing.

The people with knowledge of the trip’s intentions asked for comment on the claims, but the State Council Information Office, which answers media inquiries for the Chinese government, did not immediately reply.

Following the launch of Chinese artificial intelligence start-up DeepSeek earlier this year, Alfred Wu, a China researcher at the National University of Singapore, suggested that Xi may utilize the visit to highlight recent technological advancements.

Wu stated that he would not anticipate Xi discussing the effects of the trade war in public. According to what we’ve seen of Xi, he wouldn’t want to appear weak, he stated.

Last week, the International Monetary Fund cut its growth projections for the US, China, and the majority of the globe, pointing to the impact of US tariffs that are currently at a 100-year high.

China’s market reliance on the United States has decreased since the first Trump administration. However, Beijing’s attempts to persuade exporters to look for home markets instead of the US market have failed due to the lackluster domestic demand.

China responded to Trump’s announcement of broad tariffs earlier this month with counter-tariffs and trade restrictions on essential minerals, such as rare earths required for industrial magnets.

Although the Trump administration has indicated that it is amenable to defusing the trade dispute, the two sides still disagree on important points.

According to Trump, he and Xi had a phone conversation last week and were discussing tariffs. China disputed such on Monday, claiming that the two presidents “did not have a call recently.”

Xi used his most recent visit to Shanghai, which took place in November 2023, to call on the city to advance its technological leadership and capitalize on its strengths as a global financial hub.

He also met at the time with provinces that were part of an economic bloc that China has called the Yangtze River Economic Belt. The region, which includes Shanghai and ten other cities and provinces along the Yangtze River, is a major export hub that contributes over 40% of China’s GDP.

Dan Wang, the China director for Eurasia Group, stated that Xi might use his trip to Shanghai to promote additional foreign funding to help Chinese businesses expand internationally and to advocate for the yuan’s further globalization.

According to Wang, given the stakes, Xi might also concentrate on employment and manufacturing. According to Wang, “if they lose half of their US orders, the job losses in the region could be substantial.”

The economy can withstand the trade war, according to Chinese authorities, who also hinted that additional policy help would be on the way if necessary.

Beijing is “fully confident” that China will meet its 2025 economic growth target of about 5%, Zhao Chenxin, the vice chair of the National Development and Reform Commission, said at a news conference on Monday.

China could obtain enough corn, soybeans, and other grains without importing any from the United States, according to Zhao. He claimed that China could obtain the energy it required without purchasing from the United States.