Renowned Chinese economist Wu Xiaoqiu speaks at the Boao Forum for Asia (BFA) 2025 held in Hainan Island, China, on March 27. (Source: Xinhua)

According to this expert, if every country puts its own interests first, the world will fall into instability and chaos. The increasing trend of anti-globalization - when more and more countries apply tariff measures - will negatively impact the Chinese economy and "deal a heavy blow" to the recovery of the global economy.

US President Donald Trump has announced a 25% tariff on all imported cars and tit-for-tat tariffs on individual countries based on trade policy on Wednesday (April 2) - a day he declared would be "Liberation Day" for US trade.

Mr. Wu criticized the White House's tariff policy as "an outdated approach" to protect the domestic economy, and said the world needs to restore an effective trading system based on comparative advantage, competitive cooperation and liberalized trade.

“Although the World Trade Organization (WTO) has been weakened, its fundamental principles must be respected. The future trade order – whether bilateral, multilateral or regional – must maintain core WTO values: low tariff burdens, transparent trading and, most importantly, dispute settlement mechanisms,” Mr. Wu stressed.

This week, Washington announced plans to impose a 25 percent import tax on all non-US-made cars, 10 times higher than the current tax, and a 25 percent import tax on any country that buys oil from Venezuela.

The Trump administration raised tariffs on imports from China to 20% earlier this month, after announcing a 10% tariff last month.

World economic discussion session at the Boao Forum for Asia (BFA) 2025. (Source: Xinhua)

However, on March 26, after a video call between Chinese Vice Premier He Lifeng and US Trade Representative Jamieson Greer, Mr. Trump suddenly announced that he would consider reducing tariffs on Chinese goods if Beijing supported the sale of the TikTok application of Bytedance Group to a company in the US.

China’s export growth slowed in the first two months of this year compared with the end of last year — a move analysts say is a reallocation of export market share to avoid tariff risks. Many say the impact of higher tariffs on the world’s second-largest economy will become more apparent next month.

Despite the tariff cloud clouding the outlook for exports - one of the bright spots in the economic recovery - Beijing has boldly kept its GDP growth target for this year at 5% - the same as in 2024.

China's top economist Wu Xiaoqiu said this is an ambitious goal that requires great efforts from the Northeast Asian country.

“Although in the past, China's economic achievements were very clear, now we are facing many difficulties and challenges ahead,” said the expert, pointing out that weak demand, aging population, debt pressure and deflation risks... are the “cornerstones” blocking China's growth path.

Mr. Wu added that new growth drivers for China's economy will come from technological innovation, industrial upgrading and structural transformation, along with improving the external environment and expanding both domestic and international consumption.

“While the government is implementing a range of policies to support the transition, the process will take time to fully bear fruit.”