China’s trade war strategy? Bet on Guizhou, long one of its poorest provinces
The 2025 trade war launched by the United States is shaping up to become a watershed moment for Chinese policymakers.
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While the country’s economic resilience and role at the centre of global supply chains helped secure a 90-day truce with Washington, Beijing is digging deep to fight a protracted conflict. The forthcoming Five-Year Plan – China’s signature development blueprint – is expected to fortify the domestic economy in the pursuit of global leadership.
Provincial leaders are seizing opportunities to align with the national strategy, as the 2026-2030 development plan, officially released in March 2026, promises to reshape the nation’s economic and industrial landscape.
Guizhou, a mountainous province in Southwest China, 400 kilometres from the nearest coast, has barely felt the shock waves from Donald Trump’s unprecedented tariff blitz. Instead, officials have identified opportunities as Beijing strategically pivots to the domestic market and renews its focus on economic security.
“We must fully play up our comparative advantages to serve the national strategy,” said Xu Lin, Guizhou’s party chief, at a preparation conference for the Five-Year Plan on May 28.
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Guizhou now counts on the “strategic hinterland strategy”, introduced during a policymaking conference in December 2023.
The plan focuses on developing inland industrial bases, material reserves and infrastructure. It has drawn widespread comparisons to China’s Third Line Construction Project – when the central government relocated tens of thousands of defence projects and strategic factories to the mountainous west in the 1960s and 1970s amid escalating tensions with the Soviet Union.