China has responded to President Donald Trump’s escalating trade war with defiance, refusing to back down despite facing 20% tariffs on all exports to the U.S. Beijing has countered with its own retaliatory tariffs, signaling resilience even amid its own economic struggles. This firm stance was evident at the opening of the National People’s Congress (NPC) on Wednesday.
National People’s Congress: A Show of Strength
Thousands of delegates from across China gathered in Beijing’s Tiananmen Square for the country’s most important political event. Dressed in ceremonial attire, they arrived for discussions largely centered on the economy, though certain sensitive topics—such as the ongoing trade war—remained off-limits when speaking with foreign media.
Despite the economic impact of trade tensions, none of the delegates responded to questions about whether Presidents Trump and Xi Jinping could resolve their differences. The focus remained on projecting unity and national strength.
Premier Li Qiang’s Address and Economic Goals
Inside the Great Hall of the People, attention shifted to the keynote address by Premier Li Qiang, who outlined an ambitious GDP growth target of 5% for the year. He also pledged increased fiscal stimulus to combat challenges such as youth unemployment, weak consumer spending, and the lingering effects of China’s property crisis.
While acknowledging rising geopolitical tensions, including the ongoing trade war with the U.S., Li’s speech projected confidence that China’s economy could weather the storm.
Hope for Resolution Amid Trade Tensions
Some Chinese officials remained cautiously optimistic. “As this sort of rivalry goes on, there will come a point where we can have a good settlement,” said Delegate Lin Shun-chao from Hong Kong.
However, as trade disputes persist, global markets have responded. Interestingly, while Chinese stocks have risen about 15% since the start of the year, U.S. markets have declined nearly 2%, suggesting confidence in China’s ability to manage economic turbulence.
A Standoff with Economic Implications
The NPC’s messaging and China’s market resilience suggest a belief that the country can endure Trump’s trade measures. While hopes for an eventual settlement remain, Beijing appears determined to hold its ground in what has become a high-stakes economic confrontation.
