China’s economy faces new challenges under shifting global policies. Scholar Jing Qian believes the country must adapt to competition and artificial intelligence advances.
“China must rethink its economic structure in response to global shifts,” said Qian. The trade war with the U.S. and AI development, including DeepSeek’s rise, are reshaping industries.
DeepSeek, a Chinese AI company, is gaining attention as a rival to Western tech firms. Experts say AI advancements could boost productivity but also disrupt traditional jobs.
The trade war, which started under former U.S. President Donald Trump, continues to impact Chinese exports. Higher tariffs and shifting supply chains have forced businesses to adjust strategies.
Many U.S. companies have reduced reliance on Chinese manufacturers. Some firms have relocated production to Southeast Asia or Mexico to avoid tariffs and trade restrictions.
China has focused on domestic growth to counter these pressures. Policies aim to strengthen technology sectors, manufacturing, and local consumer markets.
“The economy must rely more on internal demand,” said Qian. Officials are encouraging investment in new industries to reduce dependence on exports.
The AI sector is expanding rapidly, with companies like DeepSeek leading innovation. AI-driven industries are expected to grow, but some workers fear automation will reduce job opportunities.
Automation has already replaced jobs in manufacturing and service industries. The government is pushing for retraining programs to help displaced workers find new careers.
China’s government has increased investment in research and development. Officials hope AI and automation will drive future economic growth.
The chip industry has become a key focus as the U.S. restricts exports of advanced semiconductors. China is investing heavily in local production to reduce reliance on foreign suppliers.
Manufacturing has also shifted due to changing global trade conditions. Some Chinese firms have moved production to Southeast Asia to avoid U.S. tariffs.
“Companies are adapting to a new trade environment,” said a business analyst. Many firms are expanding operations in Vietnam, Indonesia, and India to stay competitive.
New trade agreements have been signed to reduce dependence on Western markets. China has strengthened economic ties with countries in Asia, Africa, and Latin America.
Experts say long-term success depends on balancing exports with domestic demand. Consumers in China are now a key focus as the economy adapts to global changes.
China has also emphasized digital currency and financial technology. The government-backed digital yuan is being tested to support trade and financial transactions.
The digital yuan is expected to give China more control over financial transactions. Some countries see it as a challenge to the U.S. dollar’s dominance in global trade.
Technology and data security have become priorities. The U.S. has restricted Chinese access to advanced semiconductors, pushing China to develop its chip industry.
China is also increasing oversight of its tech industry. New regulations aim to protect data security and prevent foreign influence over key technology sectors.
Qian warns that economic reforms must balance innovation with job security. The government has pledged support for industries facing disruption and continues to push for global trade partnerships.
China’s leaders say stability is the top priority. They aim to ensure steady growth while managing economic risks.
Economic policy changes will continue to shape China’s future. The success of these strategies will determine its role in global trade.
