China's Xi to Visit Shanghai

Xi Jinping Heads to Shanghai as China Faces High-Stakes Trade Tensions

Xi Heads to Shanghai as During China High-Stakes Trade Tensions

SHANGHAI, April 28— Xi Jinping Heads to Shanghai as China Faces High-Stakes Trade Tensions

Chinese President Xi Jinping is scheduled to visit Shanghai this week, according to two sources familiar with the matter, in a move seen as a direct effort to bolster confidence in China's primary international financial center amid intensifying pressure from the escalating U.S. trade war.

The trip, which includes a stop at Tesla’s largest global manufacturing site, comes as senior Chinese officials have ramped up assurances that the world's second-largest economy remains resilient, even as U.S. President Donald Trump’s tariffs—now standing at a 145% rate—threaten China’s critical export sector.

The Chinese government has not officially commented on Xi's planned visit. The State Council Information Office, responsible for responding to media inquiries, declined to confirm the sources' account.

Analysts suggest the optics of the visit are clear. Alfred Wu of the National University of Singapore noted that Xi is unlikely to address the trade war publicly, choosing instead to spotlight technological advancements such as the recent launch of Chinese AI startup DeepSeek. "Xi would not want to show any weakness," Wu said.

Meanwhile, global growth projections are deteriorating. The International Monetary Fund last week cut forecasts for China, the U.S., and most major economies, citing the toll from tariffs now at century-high levels.

Despite efforts over recent years to diversify away from reliance on U.S. markets, Chinese exporters have struggled to replace lost American demand with domestic or regional alternatives. Weak internal consumption continues to undermine Beijing's “dual circulation” strategy.

In retaliation for the latest wave of U.S. tariffs, China has imposed its own countermeasures, including restrictions on key exports such as rare earths—materials critical to global industrial supply chains.

While Washington has signaled a theoretical openness to de-escalation, fundamental disagreements remain entrenched. Trump claimed last week he and Xi had spoken by phone regarding tariffs; China's foreign ministry swiftly denied any recent communication between the two leaders.

Strategic Focus: Tech, Finance, and Employment

Xi’s last visit to Shanghai in November 2023 emphasized the city’s role as a global financial hub and a leader in technology development. That trip also included meetings with officials from the Yangtze River Economic Belt—a bloc that accounts for over 40% of China’s GDP and serves as a key artery for exports.

Analysts anticipate Xi may again prioritize globalization of the yuan and call for greater overseas financing to support Chinese firms expanding abroad. Dan Wang, China director at Eurasia Group, noted that Xi could also underscore the importance of sustaining manufacturing and employment: “The job losses in the region could be substantial if they lose half of their U.S. orders,” Wang said.

Chinese authorities continue to project confidence. Zhao Chenxin, vice chair of the National Development and Reform Commission, reiterated on Monday that China remains “fully confident” in achieving its 5% growth target for 2025. Zhao added that China can secure vital commodities—such as soybeans and energy supplies—without relying on U.S. imports if necessary.

The stakes surrounding Xi’s Shanghai visit are significant: reinforcing domestic confidence, projecting strength to global markets, and navigating the country through its most serious trade challenge since the start of the Trump tariffs era.