China is poised at a crossroads as it aims to strengthen its technological prowess while navigating ongoing tensions with the United States. At a press conference held on Thursday, China’s economic leaders emphasized the country’s dedication to innovation in fields like AI, robotics, 6G, and quantum computing. Despite facing challenges from U.S. policies, China remains committed to its path of independent development, albeit not without acknowledging the hurdles ahead.
Foreign Minister Wang Yi made it clear that China opposes any form of power politics and hegemony. The Asian giant is determined to forge its own path amidst global pressures and has announced a state-backed fund to support tech innovation. This move comes as China seeks ways to mitigate the impact of trade frictions and tariffs imposed by the Trump administration, which recently doubled additional tariffs on all Chinese imports to 20%.
"China resolutely opposes power politics and hegemony," – Foreign Minister Wang Yi
Innovations in Technology
China is investing heavily in its high-tech sector, directing resources toward transforming its economy through advancements in artificial intelligence, robotics, 6G, and quantum computing. The phrase "confidence builds strength" was echoed nearly a dozen times during the press conference, underscoring China's ambition to become a global leader in technology.
The government has also shown a willingness to welcome foreign enterprises to play a role in this technological evolution, marking a significant shift in tone under Xi Jinping's leadership.
“We are witnessing an ever-expanding horizon for China to become a science and technology powerhouse,”
However, experts like Wang Yiwei from Renmin University suggest that China's independent development may not be sustainable without competition. The nation's strategy must adapt as it prepares for a potentially prolonged economic confrontation with the United States.
Navigating Trade Tensions
Trade relations between China and the United States remain strained as Trump's administration continues to challenge Beijing with tariffs and various trade measures. A foreign ministry spokesperson acknowledged trade frictions as a significant challenge for China, adding another layer of complexity to its economic landscape.
“If the US insists on waging a tariff war, trade war, or any other kind of war, China will fight till the end,” – Foreign Ministry Spokesperson
China's response includes a strategic focus on domestic demand to cushion against external shocks. Bert Hofman suggests that Beijing has likely considered scenarios for a "Trade War 2.0," indicating that China must be prepared for any eventualities.
“It is likely that Beijing has thought through the scenarios of Trade War 2.0, but whatever happens, it is clear that China’s growth will have to rely more on domestic demand,” – Bert Hofman
Despite these challenges, China remains an indispensable part of global supply chains. Its ability to weather these storms could influence its standing on the world stage as it seeks to balance growth with geopolitical realities.
Restoring Economic Confidence
After enduring setbacks from COVID-19 restrictions, a property sector crisis, and ongoing tech tensions with the United States, China is beginning to regain its confidence. Initiatives aimed at revving up the economy and boosting consumer confidence are underway, although critics point out that these measures are less aggressive than necessary.
Premier Li highlights the complex and severe external environment impacting China's trade and technological sectors. Despite these adversities, China remains optimistic about overcoming difficulties in pursuit of development.
“The external environment is becoming more complex and severe, which may have a greater impact on the country’s trade, science and technology and other fields,” – Premier Li
The sentiment echoed by leaders like Li Qiang reinforces China's resolve to navigate these turbulent waters with resilience.
“We can prevail over any difficulty in pursuing development,” – Li Qiang
