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Amid a trade war, Xi Jinping may be purging China's armed forces

The Straits Times

|

April 24, 2025

Why the tariff confrontation is not the only thing on his mind.

Amid a trade war, Xi Jinping may be purging China's armed forces

In Beijing, springtime warmth has begun to draw queues to restaurants that offer al fresco dining; trendy shopping districts are growing more crowded. Mr Jia, a 36-year-old investor, says he is not bothered by America's tariffs. Standing outside his friend's cupcake shop, he says US President Donald Trump's levies are a sign that America feels threatened by China's rise. America's power is declining, he says. "To be honest, what you feel in today's world is that hegemony is very hard to achieve."

The trade war is everywhere in China. State media is trumpeting President Xi Jinping's support for "multilateralism and international trade rules". News broadcasts have been at pains to show Mr Xi on a visit to South-east Asia, "creating development opportunities" and supporting "regional economic integration" in the face of Maga protectionism.

China has warned other countries it will retaliate if they buckle to American pressure to impose tariffs on China.

There is some evidence China's charm-and-harm campaign is working. On April 22, it was reported that Mr Xi will be presented this week with a letter from Mr Shigeru Ishiba, Japan's Prime Minister, aimed at maintaining stable Sino-Japanese trade links.

Yet for the man running China, what matters more is the domestic picture. Relations with the United States and the world are "not top of the list for the things that might keep him awake at night", says a former senior American intelligence official.

Part of that calculus relates to the economic consequences within China of the trade war.

The other is less noticed, but critical. Just as the economy is battling unprecedented headwinds, Mr Xi's remorseless campaign to drive out corruption and enforce loyalty in the top ranks of the party is generating turbulence.

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