While Donald Trump's trade war has sparked tariffs and global tension, China's real economic challenge lies within its own borders.

Axar.az reports, citing an article on BBC, President Xi Jinping faces mounting domestic issues including a housing market collapse, declining consumer confidence, rising youth unemployment, and an aging population straining the pension system.

Though China is less reliant on U.S. exports than before, it struggles to boost internal demand quickly enough to offset losses.

To adapt, Xi has expanded trade with the Global South and pivoted towards advanced manufacturing like EVs and AI. However, skepticism about China's free trade credentials—given its past retaliatory tariffs—may limit its geopolitical ambitions. Despite the pressure, Xi is betting China can outlast U.S. economic aggression and turn this crisis into an opportunity for structural reform and global repositioning.