China Prepared For 'Shocks That Exceed Expectations', Says Premier Li Qiang

Speaking at the China Development Forum in Beijing on Sunday, Li emphasised the importance of market openness in response to increasing economic fragmentation.

Economists warned that if trade tensions with the US escalated, China would need significant stimulus measures to meet its growth objectives.

Source : ABPLIVE AI

Chinese Premier Li Qiang assured that the country was prepared for "shocks that exceed expectations" as the world anticipated new tariff announcements from US President Donald Trump next month.

Speaking at the China Development Forum in Beijing on Sunday, Li emphasised the importance of market openness in response to increasing economic fragmentation, reported Bloomberg.

"Instability and uncertainty are on the upswing. At this time, I think it is even more important for each of our countries to open up markets more, and for all of our businesses to share their resources more," the official said.

Foreign Investment and Trade Tensions

Li’s remarks came amid China's renewed push to attract foreign investors after inbound investments fell to their lowest levels in over thirty years. The country’s economic slowdown and rising trade tensions with the US contributed to the declining appeal of investing in China.

The China Development Forum is expected to be attended by top executives such as Apple Inc.’s Tim Cook, Qualcomm Inc.’s Cristiano Amon, Pfizer Inc.’s Albert Bourla, and Saudi Aramco’s Amin Nasser.

Reports have claimed that the corporate leaders are expected to meet Chinese President Xi Jinping on March 28.

Notably, Republican Senator Steve Daines, a member of the Foreign Relations Committee, met Vice Premier He Lifeng on Saturday, marking a rare public engagement between US and Chinese officials since Trump’s return to the White House. Daines was also scheduled to meet Li on Sunday.

In an effort to support economic stability, Li reiterated the central bank’s commitment to adjusting interest rates and the reserve requirement ratio "when timely" while promising additional support if needed.

Economic Outlook and Trade Disruptions

China has set an ambitious economic growth target of approximately 5 per cent for 2025 while raising its fiscal deficit to a record high in over three decades. However, economists warned that if trade tensions with the US escalated, China would need significant stimulus measures to meet its growth objectives.

In early 2025, trade disruptions already began to surface. Chinese purchases of US cotton, large-engined vehicles, and certain energy products sharply declined in the first two months of the year. These goods were previously subjected to Chinese retaliatory tariffs in response to Trump’s trade policies.

Meanwhile, Beijing sought to portray itself as a pillar of global stability, leveraging momentum in its private sector, particularly through AI-driven companies like DeepSeek. A newly launched consumption action plan also aimed to shield the economy from external risks.

Forum’s Evolution and Leadership Engagement

Established in 2000 under then-Premier Zhu Rongji, the China Development Forum provides a platform for high-level engagement between China and global business leaders. Typically, a vice premier delivers the keynote address, while the premier holds private discussions with executives. However, in a departure from tradition, Li spoke at the forum last year while Xi met with American business leaders separately, as Beijing worked to counter negative perceptions surrounding its economy.