The country ‘is currently at its worst economic situation in nearly 20 years,’ one expert said.
The Chinese communist regime has announced its economic goals for the coming year. The announcement came at its annual top political meetings known as the “Two Sessions,” amid an ongoing tariff war with the United States.
Observers have said that the official economic targets have political meaning over and above simply reflecting China’s economic reality, especially given the impact of U.S. tariff increases on Chinese goods.
Chinese Premier Li Qiang said in his government work report at the National People’s Congress—China’s rubber stamp legislature—on March 5 that China’s gross domestic product (GDP) growth rate is set at around 5 percent for 2025. The urban surveyed unemployment rate will be around 5.5 percent, with more than 12 million new urban jobs; and the consumer price index (CPI) will increase by about 2 percent.
The “Two Sessions”—the National People’s Congress and the Chinese People’s Political Consultative Conference—started on March 4 and is expected to last for a week. The United States’ additional 10 percent tariffs on Chinese goods took effect on the same day.
The tariff was added on top of a previous 10 percent tariff increase on Chinese goods last month.
The 20 percent tariff increase is in addition to any Section 301 tariffs implemented during the first Trump administration or the Biden administration, making certain products from China subject to 45 percent tariffs in addition to normal duty rates.
In retaliation, the Chinese communist regime announced that starting March 10, up to 15 percent in additional tariffs will be imposed on some products from the United States. It added 15 U.S. entities to its export control list.
“If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” China’s embassy to the United States posted on social media platform X on March 5.
“China’s countermeasures are limited and mostly symbolic, but its attitude is relatively tough. It shows that Beijing will not hesitate to sacrifice China’s economic development for political stability and control,” Chinese American economist Davy J. Wong said of China’s retaliation to the U.S. tariff increase.
By Alex Wu
