Optimism Amid Challenges: China’s Parliament Projects 5% Economic Growth Amid Trade Tensions with the US

Optimism Amid Challenges: China’s Parliament Projects 5% Economic Growth Amid Trade Tensions with the US. The annual meeting of China’s parliament was held with optimism despite facing various economic challenges. As the world’s second-largest economy, China projects economic growth of 5% for next year. However, the meeting was overshadowed by the new tariff policy of the United States government under the leadership of Donald Trump.

In his State of the Union address to the US Congress, Trump emphasized the need to impose tariffs on countries accused of unfair trade practices, with China as the main target. Since taking office, Trump has twice imposed import tariffs on China, namely a 10% tariff that took effect on February 4 and an additional 10% on March 4. In fact, during the 2024 presidential election campaign, Trump stated his plan to impose tariffs of up to 60% on Chinese products.

In response, China finally took retaliatory measures by imposing tariffs on US agricultural products. However, according to analysts, China’s efforts to withstand tariff pressures by encouraging domestic consumption face several obstacles. Beijing appears cautious in dealing with Washington, whose policies are increasingly unpredictable.

Analysts also note that tariffs are just one of many problems facing the Chinese economy. Even without tariffs, the country is already in the grip of a prolonged property crisis and a housing glut amid declining buyer interest. This situation further complicates China’s efforts to maintain economic stability.

With these challenges, the Chinese government is expected to take strategic steps to maintain economic growth and deal with trade tensions with the US. China’s annual parliamentary meeting is an important moment to evaluate economic policies and formulate future strategies.