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“China’s Parliament Shows Optimism for Economy Amid Tariffs and Challenges”

March 5, 2025
China’s parliament opens with confidence about the economy despite tariffs, headwinds
From

China’s annual parliamentary session kicked off with Premier Li Qiang projecting confidence amidst economic risks. Despite facing challenges and fresh tariffs from the U.S., China aims for 5% economic growth this year. Premier Li emphasized confronting difficulties head-on and bolstering confidence in development. Acknowledging the complex external environment’s impact on trade and technology, Li highlighted weak domestic economic foundations and sluggish consumption post-COVID restrictions. To stimulate the economy, China plans proactive fiscal measures, accommodative monetary policies, and focusing on enhancing living standards and consumer spending. However, some economists doubt these measures will suffice to counter slowing growth amid external pressures. President Trump’s tariffs on Chinese imports, including a recent 10% increase, further escalate tensions. Delegates at the session expressed optimism in China’s resilience to weather the tariffs, citing the domestic market’s strength and the focus on expanding domestic demand. While not directly naming the U.S., Li’s speech hinted at the competitive environment, prompting calls for innovation and economic strengthening. Delegates emphasized the need for a resolution to the trade war, underscoring the mutual detriment of prolonged disputes.

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