As trade tensions with the United States grow worse, China is staying confident and calls President Trump’s threat of higher tariffs an act of economic bullying. The country believes that it doesn’t need the U.S., and that talks are dependent on tariffs.
As ABC reports, China is presenting itself as self-sufficient. Government officials said the country could handle reduced or even stopped energy imports from the U.S. They also claimed that even though China is buying less U.S. grain and farm products, food supplies are secure because there is enough available from other countries.
A major part of China’s strategy is to increase spending within the country. This includes policies like giving rebates to people who replace old cars, appliances, and factory equipment with newer models. The government expects this to bring in over 5 trillion yuan ($34.8 billion) each year in equipment upgrades. China is also speeding up efforts to move more people from rural areas to cities, believing this will lead to big investments and economic growth.
China isn’t scared of US Tariffs, for now
As reported by AP news, Chinese officials say they expect growth to stay around 5% this year, the same as in 2024. However, groups like the International Monetary Fund and some investment companies have lowered their forecasts to about 4%. Millions of jobs in China’s export industry are at risk, raising worries about possible social and economic problems.
Even with these lower predictions, Chinese officials remain hopeful about the economy’s strength. They say they have “enough” ways to keep employment stable, including more support for businesses and programs to help unemployed workers start their own businesses. The People’s Bank of China plans to use tools like lowering interest rates and adjusting reserve requirements to encourage more lending and economic activity.
The Chinese government’s view of the situation is strong and clear. Officials have repeatedly called U.S. actions “bullying,” saying America is making up unfair trade barriers and ignoring international rules. Zhao Chenxin, deputy director of the National Development and Reform Commission, said, “They make up bargaining chips out of thin air, bully and go back on their words, which makes everyone see one thing more and more clearly, that is the so-called ‘reciprocal tariffs’ severely go against historical trends and economic laws, impact international trade rules and order and seriously impair the legitimate rights and interests of countries.”
After a Politburo meeting, senior Chinese officials said they could protect jobs and lessen the impact of tariffs that could go as high as 145% on Chinese goods sold to the U.S. They stressed their plans to help businesses and unemployed workers, make it easier to get loans and boost spending within China to counter the effects of the trade war.
Published: Apr 28, 2025 12:20 pm