China’s position on the world stage has changed dramatically in recent years. This adjustment symbolizes a volatile cocktail of aggressive international diplomacy and remarkable domestic economic achievement. As President Xi Jinping prepares for his first overseas state visit of 2025 to Southeast Asia, discussions surrounding the U.S.-China relationship intensify. This visit, which makes important stops in Vietnam, Malaysia, and Cambodia to showcase the importance of each country, serves to highlight China’s efforts to solidify relationships within the region. Notably, China was absent from recent dialogues between former President Donald Trump and President Xi, highlighting a potential shift in diplomatic engagement.
In March, China’s new yuan loans more than doubled expectations, boosted mostly by a bringing rush of short-term corporate loans. Goldman Sachs stated that this surprising growth is a testament to the strength of China’s economic structure in turbulent times across the globe. The People’s Bank of China is set to announce its monthly decision on the benchmark loan prime rate on April 21, further emphasizing the nation’s proactive approach to economic management.
China is also making headlines with its upcoming event: the world’s first humanoid robot half marathon, scheduled for April 19 in Beijing. This event makes clear China’s ambitious plans to lead the world in technology and innovation across multiple sectors. With the Shanghai Auto Show from April 23 – May 2 just around the corner, the world automotive stage is shifting noticeably toward Asia and China in particular. This event underscores China’s importance as a linchpin for international trade.
As of June, recent year-over-year per capita disposable income in China has risen by a staggering 21% in nominal terms. Since 2018, it has increased by 38%. Exports have never been stronger! Between 2018 and 2024, China’s exports to the U.S. grew by a modest 10% but they grew even faster to the European Union at a remarkable 26%. These kinds of figures serve to demonstrate China’s growing economic clout in the face of strong external pressures.
Even with these positive steps, many U.S. business leaders say they are worried by how far U.S.-China relations have deteriorated. As one senior U.S. exec lamented, “The Chinese didn’t pick up the phone.” He stressed the need for more and better engagement from China following on these meetings. Additionally, Bruce Liu emphasized that “They are not in a rush to have a conversation, or initiate a conversation with the U.S. side at this moment.” This attitude is emblematic of a realpolitik China treading carefully as it tests the waters of its great power competition.
The evolving dynamics indicate that while China remains open to collaboration, it is prepared to stand firm against perceived bullying. Liu stated, “If you are kind to me I’m going to be twice kind to you. That’s [being] Chinese,” underscoring a diplomatic philosophy rooted in reciprocity. He added, “If you want to bully me, we’re not going to take that,” indicating China’s readiness to confront challenges that may arise from its economic interactions.
As China strengthens its regional ties through Xi’s upcoming visit and continues to show robust economic data, it remains to be seen how these factors will influence its relationship with the United States and other global powers. If things go as expected, April should see some big changes. Future meetings and policy outcomes may go a long way in determining the extent to which China will engage on the global stage.
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