Xi's call for calm signals measured approach to US trade curbs

China "must enhance its political capabilities and calmly respond to challenges brought about by changes in the domestic and international situa- tion", Mr Xi told top officials, including Politburo and State Council party members, according to the official Xinhua News Agency report on Feb 26.

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His comments coincide with US President Do- nald Trump taking his most sweeping actions yet against China in his second term, raising the risk that ties may soon worsen.

Washington has ramped up pressure by restrict- ing Chinese spending in US strategic sectors such as tech and energy, urging Mexico to impose its own tariffs on Chinese imports and pushing for fees on commercial ships made in China to counter its dominance in shipbuilding.

The White House is also working on tougher semiconductor restrictions and urging key allies to escalate their own limits on China's chip industry, aiming to curb Beijing's tech advancements, Bloomberg News reported.

Rising tensions have already rattled global inves- tors and dragged down Chinese stocks.

"America has, in my opinion, been itching for a fight with China China hasn't taken the bait," Mr Peter Alexander, managing director of Shanghai- based consultancy Z-Ben Advisors, told Bloomberg TV on Feb 26. "But you know, there are sort of two realities that we're heading towards. I'm hoping it's the one where an agreement can be made."