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BEIJING: China has intensified its defence of its state-led economic model as it prepares for crucial trade discussions with the European Union and the United States, signalling that it is unlikely to make major policy concessions despite mounting international criticism. Beijing has repeatedly argued that its development strategy, which prioritises investment in advanced manufacturing and technology, remains essential for long-term economic growth. Chinese leaders maintain that the country’s industrial policies have helped strengthen innovation and global competitiveness, rejecting accusations that they distort international trade. The latest policy statements from China’s leadership indicate a commitment to maintaining its current economic direction. While officials acknowledge challenges such as weak domestic demand and excess production capacity, they continue to favour targeted policy support instead of broad consumer-focused stimulus measures. Chinese authorities have also dismissed Western claims of industrial overcapacity, describing such criticism as politically motivated. They argue that China’s manufacturing success reflects its stage of economic development and benefits global consumers through affordable, high-quality products. Ahead of expected meetings between President Xi Jinping and US President Donald Trump later this year, as well as upcoming negotiations with the European Union, Beijing has adopted a more confident tone in defending its economic policies. Analysts believe the messaging is intended to establish clear limits on what China is willing to negotiate while encouraging greater understanding of its development model. China has also sought to counter warnings of a new “China shock” by portraying its industrial expansion as an opportunity for global economic growth. However, many Western economists argue that China’s reliance on exports, combined with subdued domestic consumption, continues to create imbalances that affect international markets. Although Beijing has slowed public investment by tightening oversight of local government spending, officials acknowledge that supply and demand remain uneven. Authorities have pledged to reduce destructive price competition among manufacturers and have reiterated their intention to strengthen consumer demand, though without announcing sweeping structural reforms. Chinese policymakers have also recognised that the country’s traditionally low household consumption cannot remain a permanent feature of its economy. While official publications describe the existing model as historically appropriate, they also suggest gradual adjustments will be necessary to ensure sustainable long-term growth. Despite these acknowledgements, Beijing remains cautious about implementing rapid reforms, fearing that abrupt policy changes could undermine economic stability. International studies continue to raise concerns over China’s economic practices. Recent research suggests that government subsidies have played a significant role in boosting the global market share of many Chinese companies, while other reports attribute much of China’s export growth to weak domestic consumption and industrial overcapacity. Analysts also note that China continues to invest in productive assets at a much faster pace than Europe and the United States, even though returns on those investments have declined. Many experts believe Beijing’s increasingly assertive defence of its economic model reflects growing confidence that it can manage trade tensions with Western partners without fundamentally changing its industrial strategy.