Addressing more than 2,000 representatives of the Chinese People’s Political Consultative Conference (CPPCC), Wang Yang – chairman of the political advisory body – highlighted the headwinds China was facing amid increasing rivalry with the United States, reported the South China Morning Post.
“We must adapt ourselves to the changing times and changing situations, raise our awareness of potential dangers and possible concerns, fully understand all aspects of stability, and enhance measures to achieve progress,” Wang told an audience of intellectuals, businessmen and grass-root workers at the start of the parliamentary sessions.
Speaking on the sidelines of the gathering, delegate Yu Minhong, did mention the trade war – and he thought it would “only do China good” over the long term, no matter how it evolved.
“Undoubtedly, the trade war will bring about difficulties and uncertainties for China. But in the longer term, it’s not necessarily a bad thing,” Yu said, wrote SCMP.
The main issue for the Chinese regarding the trade tension is growth in the domestic economy. Beijing has long used the American market as a ‘safety valve’ to offload excess production in order to keep its population working and social unrest contained. The tariffs have thrown a wrench into that strategy. Some analysts suggest that the Chinese economy could even be in recession due to the financial penalties applied.
Speaking at the recent Conservative Political Action Conference (CPAC), U.S. President Trump declared he was in no hurry to remove the tariffs and most of the pain was being felt by the Chinese. He pointed to billions in dollars flowing into the U.S. Treasury due to enacting the trade taxes.