Chinese Premier urges turning trade war pressure into economic motivation

With the United States imposing an additional 10% tariff on all Chinese goods this week, Beijing is working to shore up market confidence amid growing concerns over the potential consequences of the trade war.

The Chinese government’s response included a series of retaliatory measures, including a 10-15% tariff on some American goods. This move reflects China’s growing reliance on its domestic market, rapid technological advancements exemplified by the launch of DeepSeek’s artificial intelligence (AI) model, and the country’s robust manufacturing capabilities.

“We should strengthen trust, work together, and view external changes objectively,” Premier Li Qiang said at a plenary session of the State Council on Wednesday, the first working day of China’s Year of the Snake.

“Coordinated measures are needed to address domestic economic issues and respond to external challenges,” said Li, China’s second-ranking political figure and the chief overseer of the national economy.

“We must turn pressure into motivation [to move forward],” Li said, discussing a draft of the government work report to be reviewed by the Chinese parliament next month.

The premier is expected to announce this year’s economic targets—including GDP growth, inflation, fiscal deficit ratio, and bond issuance—during the annual parliamentary session. The market anticipates a growth target of “around 5%,” largely unchanged from last year.

At Wednesday’s meeting, Li pledged “norm-breaking” measures and “easy-to-feel” policies as he strives for progress in developing a large domestic market while boosting technological innovation and industrial upgrades.

Policies should interact more effectively with the market, provide better conditions for enterprise innovation and development, and aim to “create more opportunities for all talents,” he added.

Some provincial governments also committed to supporting innovation and fostering better business environments during local-level meetings on Wednesday, ranking these initiatives as top priorities.

Artificial intelligence and robotics prioritized

Guangdong, China’s largest provincial economy and exporter, will prioritize artificial intelligence and robotics by increasing investment to create new growth drivers, according to an announcement by party secretary Huang Kunming at a provincial development conference.

Huang highlighted leading technology companies such as Huawei Technologies, DeepSeek, and Unitree Robotics as examples of China’s competitive edge. He pledged that Guangdong could become a leader in strategically important sectors by increasing investment in key areas such as chips and software.

Xinhua published a commentary on Thursday praising how the country’s technological progress is exemplified by AI and robotics companies, while also emphasizing the need for further efforts.

“Chinese tech firms are blossoming and moving towards the Age of Exploration,” the commentary said, underscoring the need for continuous efforts in the field of technology to keep pace with rapid advancements.