Camille Naredo

The Chinese flag is pictured in front of the facade of the Chinese embassy in Berlin on April 22, 2024. John Macdougall, AFP/File

The Chinese flag is pictured in front of the facade of the Chinese embassy in Berlin on April 22, 2024

Article (news)

CHINA

Agence France-Presse

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1741088121961111324_china flag.jpg" style="width:960px" class="fr-fic fr-dib" alt="The Chinese flag is pictured in front of the facade of the Chinese embassy in Berlin on April 22, 2024. John Macdougall, AFP/File"/><span class="fr-inner" style="text-align:left">The Chinese flag is pictured in front of the facade of the Chinese embassy in Berlin on April 22, 2024. <em>John Macdougall, AFP/File</em></span></span></span></div><p>BEIJING -- China&#x27;s leadership gathered at their largest political event of the year in Beijing on Tuesday, seeking a response to US President Donald Trump&#x27;s latest salvo of tariffs targeting an already sluggish economy.</p><p>The closed-door meetings, known as the &quot;Two Sessions&quot;, are concurrent talking shops of China&#x27;s rubber-stamp parliament and a separate political advisory body.</p><p>Voting is tightly controlled and legislation is pre-approved by the ruling Communist Party.</p><p>Proceedings kicked off Tuesday at 3:00 pm (0700 GMT) with the opening ceremony of China&#x27;s People&#x27;s Political Consultative Conference (CPPCC) attended by President Xi Jinping and other party top brass, an AFP journalist in the hall said.</p><p>The political gathering will offer a rare glimpse into how Beijing plans to meet its economic growth target -- which analysts say would likely be five percent -- while it faces down an unpredictable United States.</p><p>Ahead of the meeting, parliament spokesman Lou Qinjian acknowledged that the Chinese economy faced &quot;many difficulties and challenges&quot;.</p><p>&quot;World economic and political uncertainty is increasing... domestic demand is insufficient, and some companies are facing difficulties in production and operation,&quot; he told a news conference.</p><p>Lou also expressed confidence in the economy&#x27;s ability to weather those headwinds, saying it had &quot;stable foundations, many advantages, strong resilience and great potential&quot;.</p><p>The opening of proceedings coincided with the implementation of additional US tariffs, against which China announced countermeasures on Tuesday.</p><p>All eyes will also be on possible stimulus to boost domestic demand, sorely needed to counter a potential drop in tariff-sensitive exports.</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/world/2025/2/28/china-vows-response-to-latest-us-tariffs-1627">READ: China vows response to latest US tariffs</a></div><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2025/2/18/china-condemns-us-tariff-shocks-at-wto-0709">READ: China condemns US &#x27;tariff shocks&#x27; at WTO</a></div><div><strong>- Economy in focus -</strong></div><script data-wid="auto" type="text/javascript" src="https://content.viralize.tv/display/?zid=AAEyze-tm4MR6kEa&amp;cid=ABU_w2hT1ftgYNqq"></script><p>Tuesday&#x27;s CPPCC is low-stakes compared to the almost simultaneous gathering of China&#x27;s legislature, the National People&#x27;s Congress (NPC), which starts on Wednesday.</p><p>Premier Li Qiang will deliver a speech expected to unveil economic targets during the NPC&#x27;s opening session.</p><p>Analysts polled by AFP broadly agreed that Beijing will set a goal of around five percent growth -- the same as 2024.</p><p>Observers say this is ambitious given the economic headwinds China is facing.</p><p>Analysts expect policymakers to widen the scope of a consumer goods trade-in program initiated last year that allows shoppers to exchange older home appliances and other items.</p><p>China is also grappling with a prolonged property sector crisis and high youth unemployment, issues that have dampened confidence in the economy -- which long enjoyed double-digit growth but has struggled to make a full recovery since the Covid-19 pandemic.</p><p>Investors will also be watching for signs of further support for the private sector following Xi&#x27;s rare talks with Chinese tech tycoons last month.</p><p>Officials will try to send a positive message that China is &quot;still in good shape&quot;, said Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy in Singapore.</p><p>However, specific policies may not be announced during the meetings, with impact on the markets likely &quot;limited&quot;, he said.</p><p>&quot;In the past, the NPC meeting was more about agenda-setting. Now, it&#x27;s more about sending a message and propaganda,&quot; Wu said.</p><p>&quot;Now, it&#x27;s one-man politics.&quot;</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2025/2/25/trump-s-chip-tariff-threats-raise-stakes-for-taiwan-1351">READ: Trump&#x27;s chip tariff threats raise stakes for Taiwan</a></div><div><strong>- Trump&#x27;s back -</strong></div><script data-wid="auto" type="text/javascript" src="https://content.viralize.tv/display/?zid=AAEyze-tm4MR6kEa&amp;cid=ABU_wpcBh55EMs1y"></script><p>The talks will be closely watched for signals about how China plans to deal with an increasingly unpredictable United States, its largest trading partner and strategic rival.</p><p>Donald Trump has overturned the international order and proven even more mercurial than in his first term in just over a month back in the White House.</p><p>&quot;People will be watching (for) how Xi might be responding to the uncertainties and unpredictability set before him by the challenge that is the current Trump administration,&quot; said Chong Ja Ian, an associate professor of political science at the National University of Singapore.</p><p>Pressure from Trump could motivate Beijing to strengthen the kinds of support for the economy seen last year -- interest rate cuts, easing local government debt pressure and expanding subsidy programmes for household goods.</p><p>&quot;We expect China to increase policy support in response to greater external shock from the US,&quot; Wang Tao, chief China economist at UBS, told AFP.</p><p>China will also announce its annual military budget this week.</p><p>Analysts expect an increase as Beijing navigates deepening tensions in the South China Sea and the Taiwan Strait.</p><p>&quot;I expect further investment in capability, especially in terms of missiles, aircraft, and artificial intelligence that boost the military,&quot; Chong said.</p><p>For years, China&#x27;s defense budget has expanded at a faster rate than its economic growth target.</p><div><strong>© Agence France-Presse</strong></div>

<p>The closed-door meetings, known as the "Two Sessions", are concurrent talking shops of China's rubber-stamp parliament and a separate political advisory body.</p>

The closed-door meetings, known as the "Two Sessions", are concurrent talking shops of China's rubber-stamp parliament and a separate political advisory body.

Trade war casts pall as China's leaders meet

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Trade war casts pall as China's leaders meet

Agence France-Presse,

Isabel Kua and Mary Yang

Published Mar 04, 2025 08:44 PM PHT

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United States

China

tariffs

Donald Trump

trade war

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Xi Jinping

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