China This Week: Five things you need to know (May. 17-23, 2025)

One Step Closer to China: A weekly dispatch from Beijing every Friday with insights you don’t want to miss.

Editor's note: In this week, Chinese President Xi Jinping's call for stronger manufacturing industry to advance Chinese modernization shall be focused. China's economy in April shows resilience, despite domestic and external challenges, and the country is preparing for the the 15th Five-Year Plan. What are the key highlights of this year's China-Eastern European Countries (CEECs) Expo in boosting China-Europe cooperation? How has China slammed the U.S. chip curbs? Moreover, China's tech giant Huawei unveiled two laptops powered by self-developed HarmonyOS, despite the U.S. tech coercion is worth reading. Check it out!

1. Chinese President Xi Jinping Calls for Stronger Manufacturing Industry to Advance Chinese Modernization

Xi Jinping, general secretary of the Communist Party of China Central Committee, on May 19 called for continuous efforts to build the manufacturing industry stronger to advance Chinese modernization during an inspection at Luoyang in central China's Henan Province. During the visit, Xi toured Luoyang Bearing Group Co., Ltd (洛阳轴承集团股份有限公司)., the White Horse Temple (白马寺) and the Longmen Grottoes (龙门石窟).

Xi Jinping: "China has always adhered to the path of developing the real economy. From the past reliance on imported matches, soap and iron, to now becoming the world's largest manufacturing country with the most complete industrial categories, we have taken the right path. China must continue to strengthen the manufacturing sector, adhere to the principles of building self-reliance and strength, and master core technologies in key fields." Xi also urged efforts to strengthen collaboration between industries, universities and research institutes, and cultivate a large number of high-quality talents.
习近平说，我们坚持发展实业，从过去洋火、洋皂、洋铁等靠买进来，到现在成为工业门类最齐全的世界制造业第一大国，这条路走对了。我们要继续把制造业搞好，坚持自立自强，掌握关键核心技术，推进产学研一体化，培养大批高素质人才，这样中国式现代化才能够真正实现。

Read more:

• Xi inspects central Chinese city of Luoyanga -China's State Council-

• Xi stresses firm confidence in high-quality development during Henan inspection tour -China's State Council-

• Xi's Henan trip: Making high-quality development with a modern industrial system -CGTN-

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2. China's Economy in April Remains Resilient, Prepares for the 15th Five-Year Plan

China's economy showed strong resilience in April, with industrial output rising 6.1 percent and new growth drivers emerging, data from the National Bureau of Statistics indicated amid domestic and external pressures. Preparations for the 15th Five-Year Plan (2026-2030) are underway, with ministries' preparatory studies – highlighted in an article "Exploring Key Priorities from Preparatory Studies of the 15th Five-Year Plan"《从各部委“十五五”规划前期研究中探重点》– focusing on fostering new quality productive forces. President Xi Jinping has emphasized the importance of sound, democratic and law-based decision-making to ensure that China's next five-year plan for national economic and social development is formulated with high quality.

Read more:

• Chinese President Xi stresses high-quality compilation of 15th Five-Year Plan -China’s State Council-

• Graphics: China's economy sustains steady growth in April -CGTN -

• China’s 15th Five-Year Plan to focus more on new quality productive forces -Global Times-

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3. China-Central and Eastern European Countries (CEECs) Cooperation Enhances China-Europe Ties

The fourth China-Central and Eastern Europe (CEEC) Expo & International Consumer Goods Fair held in Ningbo May 22-25 deepens China-CEEC collaboration and enhances broader China-Europe relations. Hosting 435 companies from 14 CEECs and nine countries of the UK, France and Germany, the event expands its scope from "Central and Eastern Europe" to "Central and Eastern Europe+." The expo unveils cutting-edge tech highlights reinforces CEECs' strategic role in boosting political trust and economic integration, solidifying their position as key contributors to a more connected China-Europe partnership.

Read more:

• China-CEEC cooperation bears fruitful results, enhances connectivity -CGTN-

• Graphics: China-CEEC trade cooperation sees fruitful results -CGTN-

• China-CEEC cooperation sees steady development, important opportunities: commerce ministry -CGTN-

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4. China Slams U.S. Chip Curbs Hurting Tariffs Talks, Vows Response

China has condemned new U.S. restrictions on advanced computing chips as undermining ongoing tariffs talks, vowing "necessary countermeasures" to protect its legitimate rights, after urging Washington on May 19 to reverse curbs on Huawei and uphold Geneva talks consensus. Vice Foreign Minister Ma Zhaoxu met newly appointed U.S. Ambassador David Perdue in Beijing on Tuesday, stressing China's commitment to bilateral ties based on mutual respect, peaceful coexistence, and win-win cooperation while safeguarding sovereignty and development interests. Perdue on May 16 presented the copy of credentials to Hong Lei, assistant foreign minister and director-general of the Protocol Department of Chinese Foreign Ministry.

U.S. export controls on artificial intelligence chips to China were "a failure," Nvidia Chief Executive Jensen Huang said on Wednesday.
Huang, speaking at the annual Computex event in Taipei, said Nvidia's market share in China dropped to 50 percent from 95 percent at the start of former U.S. President Joe Biden's administration.

Read more:

• New U.S. chip guidance on Huawei reveals deeper fears, tougher realities -CGTN-

• China urges U.S. to correct Huawei chip curbs, uphold consensus reached in Geneva talks -Global Times-

• China says U.S. undermined trade talks with Huawei chip warning -CNBC-

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5. China's Huawei Launches Self-developed HarmonyOS Powered Laptop and the World's first Foldable PC, Despite the U.S. tech Coercion

Chinese tech giant Huawei on May 19 launched its first laptops running its self-developed HarmonyOS, marking a breakthrough for China's domestic software ecosystem. Huawei also launched world's largest commercial foldable-screen PC, the MateBook Fold Ultimate Design. It's Huawei's latest push for technological self-reliance amid U.S. chip export controls. Chinese Commerce Ministry on May 21 vowed to use anti-sanctions law if U.S. ban on Huawei chips is enforced.

Read more:

• Huawei debuts first HarmonyOS computer, marking breakthrough for China’s homegrown operating system -Global Times-

• Huawei unveils in-house operating system to replace Windows -Japan Times-

• China warns of legal action against compliance with U.S. semiconductor restrictions -Chosun Biz-

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Stay tuned for more updates on China's political, economic, and cultural landscapes.

Disclaimer: This newsletter is for informational purposes only. All sources are publicly available and subject to change.

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