China's commerce minister: We will actively adapt to new global economy, trade environment

China's commerce minister: We will actively adapt to new global economy, trade environment

China’s commerce minister emphasized the nation’s commitment to adapting to evolving global economic and trade dynamics, aligning with broader policy priorities outlined in the upcoming 15th Five-Year Plan (FYP). The minister highlighted a strategic focus on continuity, with policies prioritizing technology-driven growth, industrial upgrading, and enhanced domestic consumption to address structural challenges such as overcapacity and a subdued property sector according to China’s economic strategy. Official signals from recent Communist Party meetings indicate confidence in the current trajectory, despite persistent issues like weak retail sales and local government debt as reported.

To navigate global trade tensions and green trade barriers (GTBs), China is accelerating digital and green transformations. Customs authorities are advancing smart port infrastructure, carbon footprint tracking, and alignment with international standards, including participation in green technology partnerships and carbon accounting frameworks according to customs analysis. These efforts aim to bolster resilience against measures like the EU’s Carbon Border Adjustment Mechanism (CBAM) and U.S. Clean Competition Act, which impose carbon-related trade costs on high-emission exports as noted.

The minister also underscored the dual circulation strategy, balancing domestic demand expansion with international market diversification. While consumption remains a weaker component of GDP (40% in 2025), policymakers are promoting services and green industries to unlock household spending potential according to economic analysis. Meanwhile, industrial consolidation and regional coordination are being prioritized to curb overproduction and foster high-value manufacturing as outlined.

Internationally, China seeks to strengthen trade ties amid shifting geopolitical dynamics, including U.S. policy shifts in energy and trade. Collaborations with partners like Canada on energy and agricultural trade are expected to expand, reflecting Beijing’s push to position itself as a reliable alternative to Western-dominated trade networks according to strategic assessments. The 15th FYP, set to be finalized in March 2026, will formalize these priorities, balancing growth stability with long-term structural reforms.