China has set a goal of achieving “around five per cent” economic growth by 2025, maintaining the same target as the previous year despite challenges posed by increasing tariffs from the United States on its export-reliant economy. Premier Li Qiang emphatically stated the government’s commitment to confronting difficulties during his address at the National People’s Congress (NPC), which functions as China’s legislative body.
Presenting his report coincided with a significant moment in global politics, as US President Donald Trump delivered his own address to Congress, highlighting the competitive stances of both nations. Beijing’s ambitious growth aspirations aim to project confidence amidst the mounting pressure exerted by the US, particularly as Trump intensified the trade conflict by doubling tariffs on all Chinese imports to 20 per cent and imposing restrictions aimed at curtailing American technology investments in China.
In response, China has implemented retaliatory tariffs of up to 15 per cent on select US goods, expanded export controls targeting multiple American companies, and lodged a complaint with the World Trade Organization. Additionally, it has halted imports of logs and soybeans from certain US companies. China’s Foreign Ministry conveyed a strong warning to the US: should America continue its tariff and trade hostilities, China is prepared to stand firm against such measures.
Despite this defiance, the heightened tariffs and potential US economic restrictions loom large over China’s goals and its efforts to establish itself as a leader in technology. The nation is currently facing significant economic hurdles, including a crisis in the property sector, rising local government debt, diminishing foreign investment, weak consumer spending, and high youth unemployment.
Experts, such as Wang Yiwei from Renmin University of China, argue that the principal aim of the US trade strategies is to challenge China’s position as the “world’s factory.” Many low-end, labour-intensive manufacturers in China are already struggling due to thin profit margins, and further tariff increases may compel them to relocate to more competitive regions like Vietnam. This relocation trend threatens to undermine the country’s manufacturing base, which plays a crucial role in employment and economic stability, thus creating potential social unrest.
In summary, while China remains resolute in aiming for steady economic growth amid international challenges, the ongoing trade tensions with the US continue to pose significant obstacles, jeopardising its broader ambitions and industrial stability.