“Where there is blockade, there is advancement.” This is China’s great plan – for China and against Trump

China reveals a great plan to correct your economy into difficulty and become a high technology power

Chinese leaders spent the last week to reveal their plan to conduct the world’s second largest economy through imminent challenges, transforming the country into a technological power and increasing expenses to achieve an ambitious objective of growth.

Thousands of delegates who gathered in Beijing for a one-week meeting of the Chinese legislature voted almost unanimously on Tuesday to approve this plan, which was presented in a government work report and an annual budget.

The Chinese and Xi Jinping government, the country’s most powerful leader for decades, have been very at stake so that these initiatives are successful.

Beijing has to resolve a series of internal issues, including the consequences of a widespread real estate crisis, the high debt of local authorities and the weak demand of consumers, while facing growing economic pressure from the United States, as President Donald Trump increases tariffs on Chinese and threatening controls on American investment in China.

On Sunday, new data showed that China’s consumer prices fell to their lowest level in 13 months in February, underlining persistent deflationary pressures that drag the economy.

The Chinese leaders were frank about the challenges that have been prevented, while reinforcing trust in China’s future. Prime Minister Li Qiang said at the opening of the People’s National Congress on Wednesday that the country’s growth objective of about 5% [nossa] Determination in facing the difficulties facing and the effort to ekay. ”

The highly choreographed meeting is above all a political ceremony, since the true power of decision belongs to the Chinese Communist Party.

But the outlined priorities – and the signs sent by Xi and their men during the event – give a crucial window to how Beijing intends to ensure the continuous economic growth and technological rise of China, especially in a height of increasing rubbres and uncertainty in their US relations.

Here’s the three main conclusions:

Focus on AI and “Industries of the Future”

Artificial Intelligence (AI) was the hot theme of this year’s meeting, with China’s enthusiasm for the technology to be reinforced by the success of the technological company Deepseek.

The large language model of the Chinese private company, launched in January, shocked Silicon Valley and excited the country. The model seemed almost to match the capabilities of its American rivals, despite years of growing US restrictions on Chinese access to high power AI chips, usually used to train such models.

China’s economic tenants announced last week a state -backed fund supported to support AI and other technological innovations, which estimated to attract nearly 1 billion of Yuans ($ 138 billion) in capital over 20 years of local and private sector governments.

The government’s work report, a document of about 30 pages that presents Beijing plans for next year, appealed to the country to “promote emerging industries and industries of the future”, such as biofabrication, quantum technology, was incorporated and 6G technology. It also stressed that China needs to develop its national talent and improve the country’s research and development.

All of this is part of Xi’s global view: transforming Chinese industries with high -tech innovation and ensuring that the country is technologically self -sufficient in the face of US efforts to limit Chinese access to US technologies for security reasons.

“China is sending a signal into the outside world that it is now quite independent of the US,” said Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing, pointing to the technological innovations developed in the country and its ambitious objective of economic growth. “Now we have to be doing (technological innovation) … It’s more like two innovation circles.”

Xi also hinted that he is recruiting more muscle for his high technology impulse. Last month, the leader met with the heads of the country’s largest technology companies at a symposium and told them that it was the “ideal height” for private companies “to use their abilities.”

The meeting represented a significant change of Tom in relation to an industry that is still recovering from a regulatory repression of years – and Xi reinforced his message during a meeting on the sidelines of Congress last week, where he told delegates to “fully implement” the “spirit” of this symposium.

Increase demand and stimulate growth

Authorities also announced that they would support their ambitious “about 5%” growth objective with more robust public expenses, increasing the budgetary deficit to about 4% of gross domestic product, the highest level in decades.

But some analysts remain skeptical about the fact that the measures announced in recent days are sufficient to compensate for the expected impact on growth in the case of aggravation of the US trade war – and to achieve a goal that China has defined this year as its main priority: boosting the weak consumer demand.

China will “move forward” to solve the problem of insufficient internal demand and make it the “main engine” of growth, Prime Minister Li said in his speech on Wednesday.

The high unemployment of young people, the gaps in social installments and social security, the volatility of the scholarship market and the financial instability caused by the real estate sector crisis are factors that lead many Chinese to face their economic future uncertainly and prefer to spare instead of spending.

The issue is now becoming more urgent for Beijing, which will need more than ever of national consumers if exports, there is a major growth engine, are affected by new American tariffs. Trump doubled additional rates on all Chinese imports to the US to 20% on March 4. China’s customs retaliation rights, which focus on a series of imports of US agricultural products, between 10% and 15%, came into force on Monday.

In recent days, Chinese authorities have been efforts to stimulate consumption, such as the extension of an old appliance exchange program, and said they would create jobs, increase wages, promote free preschool education and expand services to the elderly.

They also sought to guarantee to the country that they were facing persistent challenges in the real estate sector, namely through the announcement of a mechanism to assist local authorities to regain unlawful houses that are defining due to the real estate sector crisis.

“Beijing is trying to send a signal to local authorities that increased consumption, either through better social assistance policies and through policies that lead people to buy new electronic products, is a priority,” said Victor Shih of the center of 21st century China of California, USA.

However, it is largely a mandate that the central government expects local administrations to fund and most provinces would not have money on these efforts without imposing taxes, “which will reduce consumption,” he added.

Struggle

Despite the challenges – and uncertainty about the continuation of the climbing of technological and commercial friction with the US, Beijing’s message last week was confident, what happens. It is a message apparently directed to people in both the country and Washington.

At a press conference on the sidelines of the annual meeting, which for a long time constituted a key opportunity for China to communicate its foreign policy to international media, Foreign Minister Wang Yi sought to introduce China as a stable global actor, contrast to the US and its “America First” policy. He also promised that China would continue to advance in its ambitions.

“Where there is blockade, there is advancement; Where there is suppression, there is innovation, ”he said.

The head of diplomacy also criticized American tariffs, saying that “no country must fantasize that can suppress China, on the one hand, and develop good relations with China, on the other.”

Earlier this week, a Foreign Ministry spokesman was more direct: “If the United States insists on triggering a tariff, commercial war or any other type of war, China will fight to the end,” the journalists told a regular briefing.

But outside the official lines, the degree of growing optimism in some scholarships will depend on how rhetoric will translate into actions next year.

“The climate has become more optimistic this year,” said Yao Yang, professor at the China University of Beijing Economic Research Center, attributing this to China’s national hits such as DeepSek.

“But for this state of mind to remain, it effectively depends on government policy. If the measures taken by the government to stimulate the economy and support private companies are not decisive, then this state of mind will disappear. ”