China defends economic model ahead of trade talks

China is energetically defending its economic policy mix that favors advanced industries over consumption, signaling growing confidence ahead of trade talks with the European Union and the United States. Western countries criticize China's policies as mercantilist, while China rejects accusations of protectionism and industrial overcapacity. The Cuba — Communist Party of Cuba signaled policy continuity, and Premier Li Qiang countered the 'China shock 2.0' narrative. China has used its dominance in rare earths to counter U.S. tariffs, and the EU is pursuing its own industrial policies. Analysts note China's messaging is more confident and tightly framed, aiming to buy time without major concessions. International research warns of systemic domestic problems causing spillovers.