China has declared its unwavering determination to persevere in the face of escalating trade tensions with the United States. In response to President Donald Trump’s decision to double tariffs on all Chinese imports to 20%, Beijing retaliated by imposing tariffs of up to 15% on selected American goods, expanding export controls on a dozen US companies, and initiating legal action at the World Trade Organization. Chinese officials issued a stern warning to the US, emphasizing that the Chinese people will not yield to intimidation or coercion.
At a recent press briefing, Lin Jian, a spokesperson for China’s Foreign Ministry, criticized the US approach, stating that tactics of pressure and threats are misguided. He emphasized that China is prepared to stand firm should the US continue to pursue a tariff war or any other form of conflict.
The intensifying rhetoric and series of retaliatory measures come as Chinese President Xi Jinping gears up for a significant political event aimed at showcasing China’s resilience in the face of external challenges. The upcoming “two sessions” annual meeting will provide a platform for Xi to highlight China’s technological advancements and global influence.
The growing competition between China and the US will be in the spotlight during the two sessions, with President Trump’s address coinciding with a key speech by China’s No. 2 official, Li Qiang. Li is expected to outline China’s economic and military goals, emphasizing the country’s commitment to sustaining growth and technological innovation amidst mounting pressure from the US.
Despite the uncertainties surrounding the trade dispute, analysts do not anticipate major policy changes during the NPC meetings. The ultimate decision-making power rests with the Chinese Communist Party, under the leadership of President Xi.
While challenges persist, Beijing is expected to uphold its strategy of fostering innovation, bolstering industry, and enhancing self-reliance to navigate future uncertainties. The government remains steadfast in its commitment to tackle economic challenges while projecting stability and resilience.
President Xi’s recent remarks underscore the importance of confronting challenges with confidence and resolve. Against a backdrop of rising external pressures, China’s focus on high-tech development and global competitiveness remains a top priority.
As China enters a pivotal period of decision-making and policy setting, the nation’s determination to overcome obstacles and maintain economic growth is unwavering.
Advancements in green technologies have yielded positive results, with a leading electric vehicle manufacturer from China now competing with Elon Musk’s Tesla. The Chinese AI firm DeepSeek, known for its innovative app, surprised Silicon Valley by introducing a groundbreaking large language model earlier this year. The Chinese government is expected to maintain its focus on investing in innovation to achieve self-sufficiency in high technology, aiming to bolster economic growth and modernize the manufacturing sector. This strategic investment includes prioritizing high-end chips, quantum computing, robotics, and AI to drive economic progress in China. Political scholar Liu Dongshu emphasizes the importance of transitioning to a new economic model centered on high technology, as traditional infrastructure-based approaches may no longer suffice. The pressure from the US has further emphasized the urgency for China to prioritize technological advancements.
While facing challenges from US restrictions on technology investments, China also sees opportunities to enhance its global influence in areas such as AI and climate change. The success of DeepSeek has positioned China as a potential leader in AI and green technologies on the world stage. Observers are keen to see how Beijing will support private industry to foster innovation, particularly amidst potential US restrictions. President Xi Jinping’s recent call for entrepreneurs to play a more active role in advancing innovation reflects China’s commitment to promoting private enterprise.
The upcoming two sessions gathering will likely underscore Xi’s firm control over China’s political landscape and emphasize unity around his vision for the country’s future. The event is expected to focus on managing risks associated with China’s growth and strengthening its stance amid global uncertainties, particularly in its relationships with the US and Europe. As China intensifies its efforts in these areas, the role of the Communist Party and Xi Jinping as its core are expected to be further solidified.
“The leadership emphasized that steering this entire process is now more crucial than ever,” he remarked. China’s economy, which has been slowing down, is facing challenges from a property sector crisis and high local government debt. Foreign investment has plummeted, consumer spending has weakened, and young job seekers are encountering difficulties. In the beginning of the year, China reported a 5% economic growth in 2024, a figure that has been met with skepticism by many external observers. Analysts predict that a similar GDP target number is likely to be announced for this year. The upcoming methods Beijing intends to implement to tackle these issues are eagerly anticipated, especially after a series of policy adjustments since last summer were perceived as inadequate.
In the days ahead, Beijing may introduce new measures to stimulate consumer spending, such as through economic stimulus packages or social welfare benefits. The imposition of US tariffs has heightened the urgency for these actions, as China’s manufacturers may need to focus more on the domestic market. Xi highlighted the connection between weak demand and China’s “economic security” during a crucial Communist Party economic meeting towards the end of last year. This underscores the growing importance of addressing this issue. However, analysts observe little indication of a shift from Xi’s primary focus on strengthening support for the industry.
Chinese troops are seen marching outside Beijing’s Great Hall of the People in preparation for this year’s two sessions. It is expected that Beijing will introduce policies to ensure that at least the large and some medium-sized industrial producers can withstand additional US tariffs, according to Victor Shih, director of the University of California San Diego’s 21st Century China Center. Beijing is relying on its subsidized companies to endure these tariffs, given the reliance of US industries on Chinese goods, aiming for its own firms to eventually emerge as dominant players.
“In a sense, they are not afraid of (them),” he added, referring to the US tariffs. In the short term, this industrial support may lead to increased tension with the US and China’s other trade partners. Last year, China’s focus on exports as a growth driver resulted in a nearly $1 trillion trade surplus with the rest of the world, a significant factor driving Trump’s tariff policies.
For China, this aligns with the broader message it is expected to convey in the upcoming days: despite mounting challenges, it remains steadfast in its approach and is prepared to be viewed as a proponent of global trade and order. CNN’s Hassan Tayir provided reporting for this article.” For more CNN news and newsletters, please register at CNN.com.
