Beijing — China has responded to President Trump’s trade war with defiance, something Mr. Trump is not accustomed to. Now facing 20% tariffs on all exports to the U.S., Beijing has refused to back down — despite its own economic problems — and is hitting the U.S. with its own retaliatory tariffs. The air of strength from Beijing was projected clearly on Wednesday at the opening of the National People’s Congress.
Thousands of delegates from around the country descended on the Chinese capital’s central Tiananmen Square. Dressed in their finery, including some in traditional garments, they came to Beijing for the most important event in China’s political calendar. But for the members of China’s rubber-stamp legislature, certain topics were clearly off limits when speaking with CBS News.
None of the legislators would respond when asked about any concerns they might have regarding the trade war between the world’s two largest economies, or whether Presidents Trump and Xi Jinping might be able to get over their differences.
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Once inside the cavernous Great Hall of the People, the cameras turned to the main event. While the NPC is focused mainly on China’s sluggish economy, this year, that discussion and the public proclamations are being overshadowed by geopolitical events — and the trade war with the U.S. in particular.
President Xi, who’s government announced its retaliatory tariffs against the U.S. just one day before the NPC opened, was an observer at the massive gathering on Wednesday. His deputy, Premier Li Qiang, delivered the keynote address.
He announced an ambitious GDP growth target of 5% and committed more fiscal resources aimed at stimulating the economy, which is mired in youth unemployment and weak consumer spending, in addition to the lingering fallout from a property crisis.
Li acknowledged the geopolitical tension China is facing, including a reference to the escalating trade war that, at least from public view, shows no signs of abating.
But some of the Chinese delegates in attendance tried to remain hopeful, at least when speaking with CBS News.
“As this sort of rivalry goes on, there will come a point where we can have a good settlement,” predicted Delegate Lin Shun-chao, from Hong Kong.
While many Chinese people hope Beijing and Washington will eventually reach a trade deal, it’s worth noting how stock markets in both countries have reacted to the tit-for-tat tariffs thus far: Chinese stocks overall are up about 15% from the beginning of the year, while U.S. markets are down almost 2%.
It’s another sign — and perhaps a more telling one than the rhetoric from the podium at the NPC — of a belief in China that the country’s economy will be able to manage whatever Mr. Trump throws at it.
CBS News’ Leigh Kiniry and Qian Zhao contributed to this report.
