China has vowed not to succumb to external pressure and insists that its economy is resilient enough to endure increased tariffs imposed by U.S. President Donald Trump, amid other international challenges. However, the Chinese commerce minister, Wang Wentao, emphasized that under a trade war, no side emerges victorious.
During the annual session of China’s national congress, Wang reiterated Beijing’s desire for open dialogue while expressing that strong-arm tactics and coercion would not succeed. With China being a significant trading partner to 140 nations worldwide, it possesses ample avenues to diversify its economic engagements. Despite outlining key strategies for economic growth, new financial measures were not disclosed by Wang and other officials during the congress.
The minister highlighted that while China remains open to negotiations, it was ready to counteract U.S. tariff hikes. Since President Trump assumed office, tariffs on Chinese goods have risen twice, prompting China to respond with its own duties and restrictions against American products and corporations. Wang underscored the need for mutual respect in international relations, stating that threats would fail to intimidate China. If the U.S. continues down the wrong path, Wang warned that China would persist in its resolve. Nonetheless, he expressed openness to resolving trade disputes through appropriate dialogue and communication channels.
Wang criticized Trump’s blaming of China for the U.S. fentanyl crisis, which allegedly prompted the imposition of 20% tariffs on all Chinese imports, asserting that this would not address the underlying issue.
China’s vast trade network spans 140 countries and regions, fortified by free trade agreements with over 30 nations, providing robust alternatives in global commerce. Wang noted that China seeks to bolster these ties and welcomes additional free trade agreements. Facing significant exporter challenges, Beijing encourages its businesses to participate in international trade exhibitions and to increase their global presence. The government aims to boost export credit support and expand enterprises into services and e-commerce. “We are not relying on a single market,” Wang highlighted.
China contends with various domestic challenges, including a slump in the housing market, stagnant stock valuations, inadequate social safety nets, and job losses post-pandemic, all of which restrain economic growth. According to Zheng Shanjie, head of the National Development and Reform Commission, economic growth projections for 2025 are slightly below the government’s target, ranging from 4.6% to 4.8%. To combat these issues, Zheng said the government is crafting a detailed plan to stimulate consumer spending and business investments.
Finance Minister Lan Fo’an announced increased funding for social welfare and consumption, pledging support for debt-laden local governments and promising further investments in education, healthcare, and social security. Lan assured rigorous oversight of public spending, indicating there is flexibility within the central government’s policy framework to enact effective financial measures.
