China prepared for external shocks: first strikes an optimistic note in the middle of the trade war

Beijing China is ready to cope with potential external shocks and will deploy new recovery measures if necessary, said Prime Minister Li Qiang during a forum of global business leaders and researchers, in land to keep them engaged in the Chinese economy in the middle of a trade war with the United States.

Speaking on March 23 at the opening of the China Development Forum, a high-level engagement platform for the main world entrepreneurs and Chinese decision-makers, he said: we are ready for potential shocks that exceed our expectations and are mainly external.

Although he did not mention the United States, it was obvious that he was referring to American President Donald Trumps threatens to slap even more prices on China.

Washington has doubled the rights to Chinese imports at 20% on March 4, which prompted Beijing to retaliate with additional 10% to 15% tariffs on selected American imports. Washington should announce more prices around April 2.

Trade tensions have affected investors' feelings. In 2024, China has undergone the largest capital leak since the 1990s. Data from the state administration in February showed that direct foreign net investment (IED) dropped from 168 billion US dollars (224 billion dollars) in 2024.

IDE entries in 2024 fell 99% in the past three years, falling to $ 4.5 billion in 2024, against a historic summit of $ 344.1 billion in 2021.

Eager to attract foreign investors, Mr. Li struck an optimistic note on the Chinese economy in his speech to the 80 world entrepreneurs gathered in Diaoyutai State Guesthouse in Beijing on March 23.

He stressed that the Chinese economy remains dynamic, with points of consumption growth as shown by the Success at the box office of Ne Zha 2 The projection of the animated film was extended on the Chinese continent until April 30 and a growth of 20% of tourism income during last winter.

Any product or service, formerly multiplied by 1.4 billion, is necessarily a large company, a big problem, a large market, he said, referring to the Chinese population.

He described the plans that announced In recent weeks Stabilize its economy and encourage consumption, such as the adoption of a proactive budgetary policy and a more cowardly monetary policy, and expand trade subsidies for consumer products.

China has increased consumption an absolute priority in 2025. Economic data, however, have shown that deflationary pressures remain high, because people who are worried about maintaining or developing their income and their wealth hesitate to spend.

Mr. Li highlighted the creation of Chinas in technological innovation as a potential field for new investments. Chinese robots could start mass production in 2025, he said, citing orders in January and February.

Green economy is another lively point, he noted.

Mr. Li also urged participants in the forum to join Beijing and oppose protectionism.

I sincerely hope that all entrepreneurs will be able to make concerted efforts and cooperate in good faith to resist unilateralism and protectionism, he added, in another veiled reference to Mr. Trumps threatened to take prices from the trade partners of the Americas.

Among the public was the American Senator Pro-Trump, Steve Daines, the first American politician to meet senior Chinese officials in person since Trump came to power in January. When he met the vice-president, He Lifeng on March 22, the latter told him that Beijing was opposed to the armament of economic and commercial questions.

Among the public was also 80 business business leaders such as Apple, Siemens, Samsung Electronics, the BMW and Mercedes-Benz car manufacturers and the Saudi Aramco energy giant.

In previous years, President Xi Jinping met the main business leaders assisting for the forum to show the importance of China on foreign investment.

The forum business leaders echoed Mr. Lis Optimism on the economic prospects of Chinal.

The CEO of Novartis, going to Narasimhan, told Times Straits that Mr. Lis Speech shows the confidence that China has for its long -term growth. Novartis has been here for over 100 years, and we continue to invest and we will be there in the long term.

International researchers participating in the forum also expressed their support for Mr. Lis' assessment of the economy, but have warned that more work is still necessary to effectively consolidate consumption.

Dr. Myron Scholes, professor of Nobel laureate and economics at the University of Stanford, said that Chinas had trips to invest in strengthening consumption and that green technology was in the right direction. How fast will it go? See well.

Professor Lawrence Lau, economist and former chancellor of the Chinese University of Hong Kong, applauded the moves that Mr. Li described, as a more active budgetary policy and a cowardly monetary policy, but posed that this would perhaps not be enough.

You can pull a chain, but you can't push it. If people don't think their future is great, they won't spend, he said.

• If Lun Tian is a superior foreign correspondent that covers China for Times Straits.

JoinChannel Télégramme de St And get the latest news provided to you.