China's 'two sessions' points to determination to rebuff Trump

March 11, 2025--China's leadership plans to increase the deficit, lower inflation rates and increase manufacturing capacity whilst supporting critical technologies
China's most important annual political gathering, the so-called 'two sessions', has as one of its main objectives the setting out of the year's priority economic targets. This was done this year by Premier Li Qiang, on 5 March.

He offered to the National People's Congress and to China's most important consultative body, the Chinese People's Political Consultative Conference, a guarantee that the Chinese economy would be resilient against the Trump administration's policies, starting with the 20% minimum additional tariffs the United States has put on Chinese goods.

The most obvious way to achieve resilience is to maintain the same 5% GDP growth target as last year -which is what Li Qiang did. However, China barely reached the 5% target last year, notwithstanding a huge trade surplus of $1 trillion. Li Qiang therefore sought to show how the commitment would be met.

Three policy changes are worth mentioning: laxer policies, lower prices and more manufacturing supply.