On April 2, 2025, U.S. President Donald Trump, now in his second term, announced a sweeping 10% baseline tariff on all imports into the United States, with even steeper rates targeting specific countries. More than 100 trading partners are affected, including the EU, China, the UK, and Vietnam. The announcement has sparked strong backlash from multiple governments and triggered consecutive drops across global stock markets. In the case of China, the cumulative tariff burden on its exports has now climbed to a staggering 54%. For many Chinese private exporters—especially those heavily reliant on the U.S. market, including many led by CEIBS alumni—the consequences could be severe.

In 2024, China's economy is expected to achieve a GDP growth rate of around 5%, but it still faces significant headwinds in 2025. What is behind the stress on the Chinese economy? Will recently announced policies be able to spur growth? Can China reverse two consecutive years of deflation in 2025? What kind of policies are needed to continue hitting the 5% growth target? Most importantly, will 2025 be a turning point for China's economy? In this article, CEIBS Professor and Santander Chair in Economics Zhu Tian explores these questions and more.

Following a forecast of 5% GDP growth in 2023, will China’s economy see an upward trend in 2024, or will it continue its downward spiral over the next few years, as some organisations such as the International Monetary Fund are predicting?

“The Chinese government sent a signal that it was ready to intervene. This helped stabilize investor expectations.”

"This meeting is a big illustration of business diplomacy. Now there is not just dialogue between bodies, WTO entities and states, but diplomacy being led by companies that are not just representing themselves, but also their sectors."

“[Suppliers] operate on thin profit margins, so it’s quite likely that if tariffs are imposed on those products, the cost will be passed onto consumers.”

What will Hong Kong’s place be in this new global era? How can it leverage its unique strengths to secure long-term growth and resilience? Can further integration into the Greater Bay Area, and China’s rapidly advancing technology industries, drive new development for the city? Join us at this exclusive forum, hosted by China Europe International Business School (CEIBS), where thought leaders from business, government, and academia will offer insights into the challenges and opportunities ahead - and chart a course for Hong Kong’s future in an increasingly uncertain world.

How should companies from multinationals to SMEs prepare to deal with a changing economic reality in China and around the globe? What strategies will China’s policymakers employ to sustain economic development in today’s turbulent world, and how successful will they be? Can the international trade system, and China’s place within it, survive a rising tide of protectionism? In this international forum, organised by China Europe International Business School (CEIBS), we will gather figures from the worlds of business, government and academia to answer these questions and more.

We invite you to attend our CEIBS Global EMBA Master Class on China's Economy in the Trump 2.0 Era on January 19, 2025 at the CEIBS Shanghai campus.