As Trump pursues isolationism, China vows to spend more and open to the world

In Beijing, Premier Li Qiang pledges more spending to drive economic growth, while in Washington the president announces dramatic cutbacks

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Premier Li Qiang delivered his work report at the opening of the National People’s Congress in Beijing on Wednesday. A central theme was the need for government and the private sector to work together to spur growth. Photo: AP

Published: 2:03pm, 5 Mar 2025Updated: 6:01pm, 5 Mar 2025

Two starkly divergent views of the future were laid out on opposite sides of the Pacific on Wednesday, as Chinese Premier Li Qiang pledged more aggressive spending to drive growth, while US President Donald Trump vowed to scale back the federal government to balance the books.

As Trump effectively announced a global tariff war on “friends and foes” starting on April 2, Li said China would open more to the world and uphold the multilateral global order.

“We will stay committed to an independent foreign policy of peace and to the path of peaceful development,” Li said as he delivered the government work report at the opening of the National People’s Congress on Wednesday.

“We will remain firm in pursuing a mutually beneficial strategy of opening up, oppose hegemonism and power politics, oppose unilateralism and protectionism in all forms, and uphold international fairness and justice.”

An hour later in Washington, Trump was pledging to balance his country’s budget through dramatic cuts to federal spending. He also expanded his aggressive tariff regime, vowing to impose tariffs on India, South Korea and the European Union, in addition to China, Mexico and Canada.

In Beijing, to pump up the Chinese economy – which grew 5 per cent last year from 2023 – the deficit-to-GDP ratio for 2025 has been set at around 4 per cent, an increase of 1 percentage point over last year.