China’s premier has issued a stark warning about the global landscape, stating that «changes unseen in a century are unfolding across the world» amid escalating tensions with the US over trade. Premier Li Qiang made these remarks in parliament following the imposition of another 10% tariff on Chinese goods by Washington.
In response, Beijing has retaliated with tariffs ranging from 10% to 15% on US food and agricultural products. Premier Li emphasized the challenges facing global economic growth, citing the rise of unilateralism and protectionism, disruptions in the multilateral trading system, and an increase in tariff barriers.
The Chinese Embassy in the US has also ramped up pressure, declaring that China is prepared to engage in any form of warfare, including a tariff war, if that is what the US desires. This statement, originally made by China’s ministry of foreign affairs, signifies a growing impatience on China’s part and a sharpening of rhetoric against the tit-for-tat tariffs imposed by the US.
Despite President Trump’s enthusiasm for imposing tariffs on China, the country is grappling with significant economic challenges, setting a growth target of approximately 5% for the year. The government’s focus is on boosting consumption and domestic demand to drive economic growth.
The issue of insufficient spending in China is attributed to the weaknesses in the country’s social welfare system, prompting people to save cautiously for contingencies like job loss or healthcare expenses. Efforts are underway to stimulate domestic demand by transforming cities into «international consumption centers» and incentivizing purchases of new home products.
During a recent gathering attended by delegates from various Chinese provinces, including prominent figures like former basketball star Yao Ming and Xiaomi co-founder Lei Jun, discussions revolved around the country’s future and the impact of tariffs. Delegates expressed confidence in China’s technological advancements and resilience in the face of challenges.
As the trade war persists, businesses in China, such as a glassware exporter in Guangzhou, are bracing for the repercussions of the latest round of tariffs imposed by the US. Despite the uncertainties, there is a sense of resignation among some, acknowledging the inevitability of navigating through a rapidly changing global landscape.
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