China says it's ready for “any type of war”, with the United States and has earmarked 5% economy growth for 2025 with a multi-billion dollar stimulus package to be rolled out, while increasing its defense spend by 7.2%
"If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we're ready to fight till the end," the Chinese embassy said on X, reposting a government statement.
To that end, China will again boost its defense spending budget by a further 7.2% this year because "changes unseen in a century were unfolding across the world at a faster pace," Premier Li Qiang announced
A Foreign ministry statement also accused the U.S. of blaming China for the influx of the drug fentanyl.
"The fentanyl issue is a flimsy excuse to raise US tariffs on Chinese imports," a foreign ministry spokesperson said.
"Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China."
5% growth target
The Middle Kingdom is targeting economic growth of “around 5%”, utilising a multi-billion dollar economic stimulus package at its annual National People’s Congress to spur consumer spending amidst growing unemployment and a property crisis - let alone a further 10% levy on exports to the U.S.
Plans include issuing 1.3 trillion yuan ($179bn; £140bn) in special treasury bonds this year to help fund its stimulus measures, with local governments allowed to increase the amount of money they borrow to 4.4 trillion yuan, up from 3.9 trillion yuan, according to its annual "Work Report".
In retaliation, 10%-15% tariffs on certain agriculture imports such as corn, wheat and soybeans from the U.S. have been implemented, of which China is America’s largest market.
Chinese Premier Li Qiang said consumption has been sluggish and pledged to "vigorously boost" household demand.
"Domestically, the foundation for China's sustained economic recovery and growth is not strong enough,” Li said.
"Internationally, changes unseen in a century are unfolding across the world at a faster pace.”
