China prepared for greater shocks as US tariffs loom

CHINESE PREMIER Li Qiang said the country is prepared for “shocks that exceed expectations” as the world braces for US President Donald J. Trump to announce more tariffs on its trading partners next month.

Countries should open up markets in the face of growing economic fragmentation, Mr. Li told a gathering of global business leaders and visiting Republican Senator Steve Daines at the start of the China Development Forum in Beijing on Sunday.

“Instability and uncertainty are on the upswing,” Mr. Li said. “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.”

Top executives including Apple, Inc.’s Tim Cook, Qualcomm, Inc.’s Cristiano Amon, Pfizer, Inc.’s Albert Bourla and Saudi Aramco’s Amin Nasser will attend the two-day conference. Bloomberg News earlier reported that plans were being made for corporate titans to Chinese President Xi Jinping on March 28, citing people familiar with the matter.

Mr. Daines, a member of the Foreign Relations Committee, met with Vice-Premier He Lifeng on Saturday, a rare public exchange between US and Chinese officials since Mr. Trump returned to the White House.

The premier also reiterated a central bank pledge that policy makers will cut interest rates and the reserve requirement ratio when “timely,” and vowed to offer more support when necessary to ensure the economy runs smoothly.

Mr. Li’s remarks comes as China renews efforts to attract foreign businesses after inbound investment last year to its lowest in over three decades.

Slowing growth and rising trade tensions have hurt the appeal of investing in the world’s second-biggest economy. In the coming days, the US is set to complete a review of Beijing’s compliance with the phase-one trade deal struck during Mr. Trump’s first term and impose sweeping reciprocal duties globally.

Chinese officials are trying to capitalize on momentum in the private sector spurred by artificial intelligence startup DeepSeek, and paint Beijing as a force for global stability. China recently unveiled a consumption action plan in efforts to buffer the economy against external risks.

Authorities have set an ambitious economic growth goal of about 5% for 2025 and brought China’s fiscal deficit target to the highest in over three decades. However, if the trade war with the US intensifies, economists say China will need to roll out substantial stimulus to meet its growth target this year.

In a prelude to what could be widespread disruption to global trade, Chinese purchases of cotton, large-engined cars and some energy products from the US all plunged in the first two months of the year. All these goods were subject to Chinese retaliatory tariffs in response to Mr. Trump’s trade measures.

The China Development Forum started in 2000 with the backing of then-premier Zhu Rongji, serving as a platform for high-level dialog between China and the world.

Most years, the keynote speech was delivered by a vice premier, and the premier would hold a closed-door meeting with executives. In a break with precedence, Mr. Li addressed the forum last year while Mr. Xi met with a number of American business chiefs after the event, as Beijing sought to the downbeat narrative on its economy. — Bloomberg