As U.S. President Donald Trump intensified economic measures against China this week—doubling tariffs on all Chinese imports to 20% and hinting at further restrictions—Beijing used its annual “two sessions” political gathering to assert that its ascent remains unstoppable. The weeklong event, featuring China’s National People’s Congress (NPC) and its top advisory body, served as a stage for the government to unveil its 2025 priorities and counter U.S. pressure with a message of confidence and defiance.
Addressing thousands of delegates at the Great Hall of the People on Wednesday, China’s No. 2 official, Li Qiang, declared, “We can prevail over any difficulty in pursuing development.” He painted an image of the “giant ship of China’s economy” sailing steadily forward despite external storms. A foreign ministry spokesperson echoed this resolve on Tuesday, warning, “If the U.S. insists on waging a tariff war, trade war, or any other kind of war, China will fight till the end.”
Beijing’s Economic Game Plan
Amid a slowing economy and Trump’s aggressive trade policies, China outlined two key goals: boosting domestic consumer demand to reduce reliance on exports and accelerating Xi Jinping’s vision of transforming the nation into a technological superpower. This includes increased investment and private-sector collaboration to bolster innovation—a direct response to U.S. efforts to curb American investment in Chinese tech.
The rhetoric of “confidence” dominated the sessions, appearing nearly a dozen times in a Thursday press conference with economic leaders and headlining state media. Li’s closing remarks tied it to strength: “Confidence builds strength.” Yet, this optimism contrasts with domestic challenges—high savings rates, youth unemployment, and uncertainty about the future—suggesting Beijing’s bravado may be as much about aspiration as reality.
A Resurgent China?
After years of setbacks from Covid restrictions, a property crisis, and a U.S.-led tech war, China is regaining momentum. Successes like BYD’s electric vehicles rivaling Tesla globally, the box-office hit Ne Zha 2, and AI firm DeepSeek’s disruptive language model have fueled a renewed sense of pride. On Beijing’s streets, locals point to homegrown EVs and cultural wins as symbols of progress, with “you can ask DeepSeek” becoming a popular quip.
“Last year, people may have bought into the U.S. narrative that China has peaked,” said Wang Yiwei of Renmin University. “We still have problems, but it’s not that we’ve reached peak China.” Even Trump’s tariff hikes are seen by some as a backhanded compliment to China’s rise. “Competition with the U.S. shows how fast we’re developing,” Xia, a medical graduate student, told CNN in Beijing. “Without it, maybe our independent growth wouldn’t be sustainable.”
Looking Ahead
Beijing views Trump’s second term as a double-edged sword: a risk to its economy but also a chance to capitalize on a perceived decline in U.S. global influence. “By the end of Trump’s term, America’s standing will have weakened, and China will look more important,” predicted Zhou Bo, a retired PLA senior colonel and Tsinghua University fellow.
As the “two sessions” wrap up Tuesday, China’s leadership is betting on resilience and innovation to weather the storm. Whether this confidence translates into tangible gains—or remains a bold front against mounting challenges—could define its rivalry with the U.S. in the years ahead.
Key Points:
- U.S. Escalation: President Donald Trump doubled tariffs on Chinese imports to 20% and threatened further measures, intensifying economic pressure on China as it hosts its “two sessions” political gathering.
- China’s Defiance: At the National People’s Congress, No. 2 official Li Qiang asserted China’s ability to overcome challenges, while a foreign ministry spokesperson vowed to “fight till the end” against any U.S.-initiated trade war.
- Economic Priorities: Beijing aims to boost consumer demand to lessen export dependence and advance Xi Jinping’s goal of making China a tech superpower through increased investment and private-sector involvement.
- Confidence Theme: “Confidence” emerged as a buzzword, repeated in speeches, press conferences, and media, with Li tying it to strength, though domestic issues like youth unemployment and cautious spending temper optimism.
- Signs of Recovery: After setbacks from Covid, a property crisis, and a tech war, China cites successes like BYD’s global EV sales, Ne Zha 2’s box-office record, and DeepSeek’s AI breakthroughs as evidence of resurgence.
- Public Sentiment: Beijing residents see competition with the U.S. as a sign of China’s growing strength, with some, like student Xia, suggesting it fuels sustainable development.
- Strategic Outlook: Analysts like Zhou Bo predict Trump’s policies could weaken U.S. global standing by the end of his term, enhancing China’s relative importance despite economic risks.
