Xi Jinping, the Chinese leader, makes his entrance at a plenary session of the National People’s Congress held at the Great Hall of the People in Beijing on March 8. Amid escalating economic pressure from US President Donald Trump on China, Beijing is steadfast in its message: its ascension will continue uninterrupted. The backdrop of a significant political gathering in the capital, known as the “two sessions,” where China’s legislative body and top advisory committee convene, provides the perfect platform for Beijing’s response. This meeting sets the agenda for the upcoming year and underscores key priorities for China, such as boosting domestic consumption to reduce reliance on exports and advancing Xi Jinping’s vision for China to become a technological powerhouse through increased investment and collaboration with the private sector.
These strategic moves by Beijing come as preparations are made for a potentially prolonged economic standoff with the United States. Trump recently raised tariffs on all Chinese imports to 20% and has hinted at further measures, including tighter restrictions on American investments in China. Despite these challenges, China remains resolute in its pursuit of development, with Vice Premier Li Qiang affirming the nation’s resilience in the face of adversity during the National People’s Congress.
Amid these economic tensions, Beijing’s focus on bolstering confidence and projecting strength signals a shift in sentiment despite lingering uncertainties within the country. The optimism displayed during the event, characterized by the repeated emphasis on “confidence,” reflects China’s determination to navigate through challenges and capitalize on opportunities for growth. While concerns persist among the populace regarding job prospects and economic stability, the country’s resilience and market successes offer a glimmer of hope for the future.
Looking ahead, China sees potential for its global influence to rise as America’s position wanes, particularly in light of the shifting geopolitical landscape. The country’s strategic maneuvers and emphasis on self-reliance underscore its ambition to emerge stronger from the current economic landscape.
In the port city of Guangzhou last month, the mood of confidence was palpable. This positive energy was not limited to the corridors of power. On the streets of the capital, locally made electric vehicles glided through traffic, with brands like BYD rivaling Elon Musk’s Tesla on the global sales stage, showcasing China’s prowess in green technology. The success of blockbuster movie “Ne Zha 2” and the rise of private Chinese AI firm DeepSeek have also made waves, challenging Western assumptions about AI capabilities. Conversations in Beijing now include playful references to “asking DeepSeek,” reflecting a sense of pride in China’s technological achievements.
Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing, noted that despite challenges, China has not yet reached its peak. The ongoing economic rivalry with the United States, evident in tariff disputes, is seen by some as a testament to China’s growing strength. While acknowledging external complexities, Premier Li emphasized the need to bolster domestic consumption and reduce reliance on exports for sustained growth.
However, critics argue that Beijing’s current stimulus measures lack specificity and may not be aggressive enough to stimulate the economy effectively. Observers believe that China will need to prioritize domestic demand for future growth, especially in the face of potential trade tensions. President Xi Jinping may be striking a delicate balance between promoting economic growth and preserving resources for future challenges.
A humanoid robot captivates the audience at a robotics exhibition held in Nanjing, China last month. The Chinese government aims to focus on advancing its economy and industries through high-tech transformation as part of its 2025 agenda. Unlike US presidents, Xi Jinping does not have term limits, making the long-term objective of upgrading technology a priority for his administration.
China is prioritizing advancements in AI, robotics, 6G, and quantum computing. The government has established a state-backed fund to support tech innovation and is now open to foreign enterprises playing a role in these developments. Despite facing challenges such as restrictions on tech companies like Huawei, China remains steadfast in its pursuit of growth and innovation.
Chinese Foreign Minister Wang Yi expressed confidence in overcoming external pressures, emphasizing the country’s determination to excel in science and technology. As the US under President Donald Trump threatens trade tariffs, Beijing is closely monitoring the situation to navigate potential impacts on China’s economy.
While uncertainties persist regarding the extent of Trump’s policies on China, Beijing remains cautious yet optimistic about potential trade negotiations. Chinese diplomats are seizing opportunities to present China as a responsible global leader, emphasizing the country’s commitment to fulfilling international obligations and opposing power politics and hegemony. Observers believe that Beijing is seeking to manage its response to tariffs in the hopes of reaching a resolution through dialogue or negotiation.
This year, China has been restrained in its retaliatory actions, implementing tariffs on US energy and key agricultural products. Due to its trade deficit with the US, China may have limited options for further escalation in a potential trade war. However, Beijing is likely considering other strategies such as export controls to exert leverage in the situation.
Some observers believe that while tariffs may cause short-term difficulties for the Chinese economy, in the long run, the US might suffer more. China remains a crucial player in global supply chains and has diversified its markets internationally, making it more resilient in this trade conflict compared to previous ones.
Zhou, based in Beijing and author of the upcoming book “Should the World Fear China?,” suggests that imposing tariffs on a major economic rival may not be as effective as with smaller nations. China prefers cooperation over conflict but acknowledges the power dynamics with the US. Ultimately, China is prepared to stand its ground if necessary.
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