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THIS WEEK:

Beijing gets serious about boosting consumption, Xi’s political support for the private sector, Taiwan and Europe draw closer under Trump 2.0, state media revels in dismantling of U.S. broadcasters, and launch of weather satellites

1. Beijing Gets Serious About Boosting Consumption

What Happened: China’s State Council launched a major push to revive domestic demand, targeting asset market stability, consumption upgrades, and stronger social protections to drive spending. Minimum wages, pensions, and healthcare subsidies are being raised to support household spending. Beijing also pledges to open up investment in elderly care, childcare, and entertainment while also relaxing visa rules to attract foreign consumers.

Why It Matters: This is Beijing’s most aggressive move yet to boost consumer confidence and a clear acknowledgment that weak demand remains the biggest drag on economic recovery. With private investment cautious and exports under pressure, policymakers are shifting more of the growth burden onto households. The focus on expanding service consumption and attracting foreign tourists signals a pragmatic recalibration, but the real test lies in execution and whether households feel secure enough to spend their savings.
 
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)

Learn More: Lizzi, CCA Fellow Neil Thomas, and Chow Chung-yan discussed the most significant economic developments at the Two Sessions in a joint CCA–South China Morning Post webinar.

2. The Politics Behind Xi’s Support for the Private Sector

What Happened: In a new article, Xi Jinping reiterated his strong support for China’s private sector. He emphasized that it contributes over 50% of tax revenue, accounts for 60% of GDP, drives more than 70% of technological innovation, provides over 80% of urban employment, and makes up more than 90% of all enterprises in the country.

Why It Matters: Xi asserts that China’s private sector was established by the Chinese Communist Party (CCP) in the 1970s. Thus, the only thing that can limit private entrepreneurs is the Party itself. According to its constitution, the CCP must not only support the private sector for national development but, more importantly, must guide and oversee its political and economic well-being.

By Lobsang Tsering, Senior Research Associate, Center for China Analysis

Learn More: In an interview with the South China Morning Post, CCA Co-Founder and Managing Director Jing Qian discussed how China can right-size its economy.

3. Taiwan and Europe Draw Closer Under Trump 2.0

What Happened: A range of geopolitical issues — U.S.-China tensions, EU strategic interests, changing transatlantic relations due to Ukraine, and Taiwan’s changing role in global security and trade dynamics — will affect Europe-Taiwan relations during the second Trump administration. Trump has made it clear that Europe is not a partner he considers worthy of engagement, and his return creates additional uncertainty for Europe’s posture toward China and Taiwan.

Why It Matters: Given Trump’s strategic unpredictability, Europe and Taiwan should strive to build resilience, both independently and cooperatively, regardless of how U.S. policy develops. Both sides would benefit from improved bilateral relations, and achieving a measure of strategic autonomy from China and the United States would make them better able to withstand external shocks.
 
By Simona A. Grano, Senior Fellow on Taiwan, Center for China Analysis (@GranoSimona)
 
Learn More: Simona analyzes the positive momentum in ties between Taiwan and Europe in her new paper, “EU-Taiwan Relations: Navigating PRC Pressure, U.S.-China Competition, and Trump’s Foreign Policy.”

4. State Media Revels in Dismantling of U.S.-Funded Overseas Broadcasters

What Happened: Beijing celebrated the move to defund the U.S. Agency for Global Media, the parent of Voice of America (VOA) and Radio Free Asia. China’s Foreign Ministry said the broadcasters have “a notorious track record in their China coverage,” echoing a Global Times editorial that said, “VOA is widely recognized as Washington’s carefully crafted propaganda machine for peaceful evolution.”

Why It Matters: China’s image took a beating during the COVID-19 pandemic, but it has recently begun to improve in parts of the world. With less competition from Washington’s government-funded international media, Beijing sees an opening to expand its global effort to shape public opinion and extend its influence.

By G.A. Donovan, Fellow on Chinese Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)

Learn More: Check out CCA’s Global Public Opinion on China interactive website, which visualizes international views of China through nearly 2,500 survey results from over 160 countries.

5. China Launches Weather Satellites

What Happened: On March 17, Chinese commercial launch company Galactic Energy successfully sent eight satellites into orbit using its CERES-1 carrier rocket. Six will measure atmospheric temperature, humidity, pressure, and ionospheric electron density to provide data for global weather forecasting, while two will supply high-quality imagery.

Why It Matters: China plans to launch nine rockets in 2025, showcasing its advances in space technology. It is also strengthening global partnerships for joint research and development as it seeks to expand its leadership in the space sector.

By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)

Learn More: Read “PRC Unveils New Space Plan” by CCA Research Associate Jie Gao.