China bets big on stimulus to shield economy from trade war turmoil

China is cranking up its fiscal engines, pledging stronger efforts to boost consumption and counter the effects of an intensifying trade war with the United States, all while striving for a growth target of 5% for the year (via Reuters).

Premier Li Qiang, addressing the annual parliamentary session, painted a picture of a world shifting in ways unseen in a century, warning that trade and technology tensions could strain China's economic ambitions.

The government's response? More spending, more debt, and a sharper focus on domestic consumption, which took centre stage in Li's report. While China has long vowed to pivot towards consumer-driven growth, progress has been slow, and investors remain sceptical.

Meanwhile, artificial intelligence advancements and infrastructure investments are expected to play a bigger role in economic strategy. With tariffs piling up and global markets tightening, Chinese manufacturers are scrambling to secure new customers.

At the same time, concerns persist over whether this stimulus push can truly reshape the world's second-largest economy, as uncertainties in trade and financial markets continue to loom. For now, it remains to be seen how the situation will unfold.