As US President Donald Trump ratcheted up economic pressure on China over the past week, Beijing sent back its own message: Its rise won’t be interrupted.
A major political meeting taking place in the capital was the ideal backdrop for Beijing to respond. The “two sessions” gathering of China’s rubber-stamp legislature and its top political advisory body is where the government reveals its plans and sets the tone for the year ahead.
The top item on its priority list? Boosting consumer demand to ensure China doesn’t need to rely on exports to power its vast but slowing economy. And the next: driving forward leader Xi Jinping’s bid to transform the country into a technological superpower, by ramping up investment and enlisting the private sector.
Beijing is making these moves as it prepares for what could be a protracted economic showdown with the United States. Trump doubled additional tariffs on all Chinese imports to 20% on Tuesday and has threatened more to come – as well as tighter controls on American investment in China.
“We can prevail over any difficulty in pursuing development,” China’s No. 2 official Li Qiang told thousands of delegates seated in Beijing’s Great Hall of the People at the opening meeting of the National People’s Congress Wednesday. The “giant ship of China’s economy” will “sail steadily toward the future,” he said.
A foreign ministry spokesperson was more direct when asked about trade frictions on Tuesday: “If the US insists on waging a tariff war, trade war, or any other kind of war, China will fight till the end,” he told reporters.
And while Beijing’s priorities – and rhetoric – may echo those of years past, this time they are coming from a country that is starting to regain its swagger after being battered by its own Covid restrictions, a property sector crisis and by a tech war with the US.
“Confidence” has been an unofficial buzzword of the weeklong event, which ends Tuesday. It was used nearly a dozen times during a press conference held by China’s economic tsars on Thursday, splashed across state media coverage and included in a pointed reminder – that “confidence builds strength”– during the closing lines of Li’s nationally broadcast speech.
That optimism might be more aspiration than reality. Many in China are looking to the future with uncertainty. They’re more willing to save than spend, while young people are struggling to find jobs and feeling unsure whether their lives will be better than those of their parents.
But unlike last year, the country is entering 2025 buoyed by the market-moving successes of Chinese firms and technology. And while Trump’s return has Beijing concerned about economic risks, it’s also eyeing opportunity for its own rise.
“By the end of Trump’s second term, America’s global standing and credibility image will have gone down,” People’s Liberation Army Sen. Col. (ret) Zhou Bo, a senior fellow at Tsinghua University’s Center for International Security and Strategy in Beijing, told CNN. “And as American strength declines, China, of course, will look more important.”