China must ditch its growth target obsession；Absence of China’s third top official from ‘two sessions’ closing raises eyebrows
Dalai Lama says successor will be born in ‘free world’ outside of China
Welcome to this issue of The China Brief. Today is 03 11, 2025. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
China must ditch its growth target obsession
Nikkei Asia
William Pesek argues that China’s recent GDP growth target of "around 5%" undermines necessary reforms for sustainable growth. He suggests that Xi Jinping should eliminate this arbitrary goal to shift focus from short-term numbers to improving growth quality, innovation, and productivity. The current target perpetuates a damaging cycle of credit and debt, exacerbating economic imbalances and hindering local government finances. With rising youth unemployment and increasing protests, Pesek emphasizes that Xi must prioritize long-term strategy over immediate targets to avoid a deflationary spiral similar to Japan's experience.
https://asia.nikkei.com/Opinion/China-must-ditch-its-growth-target-obsession
Absence of China’s third top official from ‘two sessions’ closing raises eyebrows
South China Morning Post
Zhao Leji, a high-ranking official in China's Communist Party and chairman of the National People's Congress (NPC) Standing Committee, was notably absent from the closing of the NPC on Tuesday, marking a rare occurrence in recent decades where not all members of the Politburo Standing Committee attended the meeting. Zhao's last public appearance was at an NPC presidium meeting on Saturday, and he also missed the closing of the Chinese People’s Political Consultative Conference (CPPCC) on Monday, attended by other top leaders, including President Xi Jinping. Traditionally, attendance by top leaders at these annual sessions is seen as an endorsement of the legislative process. Zhao, who has held various significant roles within the party, including the anti-corruption body, was appointed chairman of the NPC Standing Committee in March 2023. In his absence, deputy NPC chief Li Hongzhong presided over the meetings Zhao missed.
https://www.scmp.com/news/china/politics/article/3301905/absence-chinas-third-top-official-two-sessions-closing-raises-eyebrows?utm_source=rss_feed
Dalai Lama says successor will be born in ‘free world’ outside of China
Al Jazeera
The Dalai Lama has stated that his successor will be born in the "free world" outside of China, as he discusses in his new book, "Voice for the Voiceless." The 89-year-old spiritual leader of Tibetan Buddhism emphasizes that this reincarnation is essential for continuing his mission of promoting universal compassion and representing the aspirations of the Tibetan people. Having fled Tibet in 1959, the Dalai Lama notes that China views Tibet as part of its territory and claims the right to appoint his successor, labeling him a "separatist." Despite this, he has advocated for a "Middle Way" approach granting Tibet greater autonomy rather than outright independence. In his book, he highlights the importance of addressing the Tibetan people's desires for freedom, warning that a society cannot remain stable if its people are perpetually unhappy.
https://www.aljazeera.com/news/2025/3/11/dalai-lama-says-successor-will-be-born-in-free-world-outside-of-china
Alibaba.com targets 100% AI adoption by merchants in 2025 in global expansion drive
South China Morning Post
Alibaba.com aims for all sellers on its platform to adopt its AI tools by year-end, with over half of its 200,000 merchants already utilizing them weekly. These tools, introduced in early 2024, assist in marketing, product management, and customer engagement, enhancing Alibaba's cross-border e-commerce efforts. Alibaba plans to invest $52 billion in AI and cloud computing over three years, focusing on developing artificial general intelligence (AGI). Additionally, the AI search engine Accio has improved product sourcing efficiency. Despite trade tensions, Alibaba.com reports significant growth in supplier numbers and digital trade among SMEs.
https://www.scmp.com/tech/big-tech/article/3301817/alibabacom-targets-100-ai-adoption-merchants-2025-global-expansion-drive?utm_source=rss_feed
China steels itself against Trump: 5 NPC takeaways
Nikkei Asia
China's "Two Sessions," a series of tightly controlled political gatherings, concluded with key proposals and insights into the government's stance on various issues, particularly in the context of its relationship with the U.S. Amid escalating trade tensions and ongoing tariffs initiated by President Donald Trump, the sessions emphasized adherence to "Xi Jinping Thought" and showcased a strong focus on technological advancement and self-sufficiency. Notably, the AI startup DeepSeek emerged as a focal point, illustrating the government's push for homegrown technology and innovation, although skepticism about the hype surrounding such enterprises persisted among industry insiders.
To boost the economy, China's government set a GDP growth target of "around 5%" for 2025, with stimulus measures including substantial consumer subsidies and increased funding to state banks. However, these measures fell short of ambitious expectations, particularly as economic indicators pointed to deflationary pressures. The trade war with the U.S. loomed large, with analysts questioning the feasibility of achieving the growth target amid retaliatory tariffs on agricultural products. While officials claimed momentum was building in the economy, the lack of significant new initiatives resulted in a muted stock market reaction post-sessions.
The sessions also highlighted military expansion, particularly regarding Taiwan, with a 7.2% increase in the defense budget aimed at enhancing combat readiness and capabilities. China's leadership reiterated the importance of food security, stressing self-reliance amid increasing import dependency. Foreign Minister Wang Yi's remarks underscored China's assertive stance against the U.S. while simultaneously expressing a willingness to engage in dialogue, indicating a complex dynamic of strength and diplomacy in China's international relations.
https://asia.nikkei.com/Politics/China-People-s-Congress/China-steels-itself-against-Trump-5-NPC-takeaways
Chinese tariffs on canola products leave Canadian farmers caught between two trade fights
The Globe and Mail
Canola farmers in Canada are facing severe challenges due to impending 25% tariffs on exports to the U.S. and a 100% tariff on canola oil and meal from China, their second-largest export market. This situation is exacerbating political tensions and impacting the agricultural supply chain, with some grain handlers halting bids. The Canadian canola industry, crucial for over 200,000 jobs and worth $43.7 billion, hopes for negotiations to resolve the issue. Meanwhile, investments in canola processing are threatened, and farmers are uncertain about switching crops amid these challenges.
https://www.theglobeandmail.com/business/economy/article-chinese-tariffs-on-canola-oil-leave-canadian-farmers-caught-between/
What Slowdown? Xi Says China Must Win the Global Tech Race.
NY Times
During China's annual legislative meeting, President Xi Jinping emphasized his ambition for China to become a technological superpower, undeterred by economic challenges, local government debt, or the trade war with the United States. The gathering, known as the National People’s Congress, has shifted under Xi's leadership from a platform for public consultation to a showcase of his vision. He called for advancements in technologies such as artificial intelligence and biotechnology, inspired by the U.S.'s historical investment in science. Xi believes that achieving self-sufficiency and leadership in science is essential for China's economic and military advancement, aligning all other efforts, including supporting private entrepreneurs, with this overarching national goal.
https://www.nytimes.com/2025/03/11/world/asia/china-xi-trump.html
Rodrigo Duterte, Philippine Ex-President, Is Arrested on I.C.C. Warrant
NY Times
Former Philippine President Rodrigo Duterte was arrested in Manila after the International Criminal Court issued a warrant for his arrest, accusing him of crimes against humanity related to his controversial war on drugs, which allegedly led to the extrajudicial killings of tens of thousands of Filipinos. Duterte, who served until 2022, was apprehended at the airport upon returning from Hong Kong. Despite facing multiple accusations, he has remained a significant political figure with limited accountability for the violence during his presidency. The situation is still developing.
https://www.nytimes.com/2025/03/10/world/asia/icc-philippines-rodrigo-duterte.html
U.S. makes no promises on tariff exemptions for Japan's steel in trade talks
Nikkei Asia
Japanese trade minister Yoji Muto met with U.S. officials, including Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, to request exemptions from President Trump's impending tariffs on steel, automobiles, and other imports. Despite Muto's efforts, he did not secure any assurances for Japan. The meetings occurred just before Trump's 25% tariffs on steel and aluminum imports were set to take effect, with additional tariffs on imported cars expected to be announced on April 2. Muto emphasized the significant investments Japanese companies have made in the U.S. and expressed concerns from Japanese steel and auto executives regarding the potential impact of the tariffs. Trump's trade policies have raised concerns about trade wars, particularly with Canada and China, and the potential for increased costs for U.S. consumers. Japan currently does not impose tariffs on imported vehicles, while the U.S. has varying duties on Japanese automobiles.
https://asia.nikkei.com/Economy/Trade-war/U.S.-makes-no-promises-on-tariff-exemptions-for-Japan-s-steel-in-trade-talks
Why is China's new megaport in Peru facing pushback?
Deutsche Welle
China has invested $3.5 billion in a new megaport in Peru, enhancing trade ties between the two nations and providing Beijing with direct access to valuable minerals in Latin America. This development is seen as a strategic move to secure control over the global mineral supply chain. However, the construction of the megaport has faced criticism for its potential environmental impact.
https://www.dw.com/en/why-is-chinas-new-megaport-in-peru-facing-pushback/video-71236815
Foxconn unveils first large language model trained with Nvidia GPUs
Nikkei Asia
Taiwan's Foxconn has launched its first large language model, named "FoxBrain," aimed at enhancing manufacturing and supply chain management. The model was developed using 120 Nvidia H100 GPUs and is based on Meta's Llama 3.1 architecture, optimized for traditional Chinese and Taiwanese language styles. Although FoxBrain has a slight performance gap compared to China's DeepSeek model, it is close to world-class standards. Initially intended for internal use, it supports various applications such as data analysis, decision support, and code generation. Foxconn plans to collaborate with technology partners to expand its applications and promote AI in various sectors. Nvidia provided support through its Taipei-1 supercomputer during the model's training. More details about FoxBrain will be revealed during Nvidia's GTC developer conference in mid-March.
https://asia.nikkei.com/Business/Technology/Foxconn-unveils-first-large-language-model-trained-with-Nvidia-GPUs
Hometown of DeepSeek founder becomes tourist hotspot, renovations paid by government
South China Morning Post
Mililing village in southern China has transformed into a tourist attraction following the success of DeepSeek, an AI company founded by local Liang Wenfeng. As the village receives increased visitor traffic, local authorities have begun renovations to improve infrastructure and aesthetics. Liang, who grew up in the village and excelled academically, has inspired admiration among visitors, leading to a surge in tourism, especially during the Spring Festival, when the village welcomed 10,000 tourists daily. Despite the influx, residents have raised concerns about the impact of tourism, such as theft of natural resources. In recognition of Liang's achievements, locals have established a fund to support academically gifted children. The village's situation mirrors the rise of tourism in other areas linked to successful individuals, such as Olympic diver Quan Hongchan's hometown.
https://www.scmp.com/news/people-culture/china-personalities/article/3301282/hometown-deepseek-founder-becomes-tourist-hotspot-renovations-paid-government?utm_source=rss_feed
US strikes back at China's maritime trade with port fee
Deutsche Welle
The U.S. Trade Representative (USTR) has proposed a $1.5 million docking fee for Chinese-built ships at U.S. ports, aiming to limit China's dominance in shipbuilding, which has surged from a 5% market share in 1999 to over 50% in 2023. This initiative, requested by five U.S. labor unions during the Biden administration, is viewed as a continuation of protectionist measures from the Trump era, including increased tariffs on Chinese imports. Experts argue that the proposal could significantly raise shipping costs and impact consumer prices, potentially slowing the U.S. economy.
Analysts suggest that the measure may not rejuvenate U.S. shipbuilding, which has significantly declined since World War II. They also note that shipping firms might reroute to avoid U.S. ports, creating legal challenges under international trade agreements. Overall, the plan is considered unlikely to yield positive outcomes, with many predicting detrimental effects for global trade and supply chains. The proposal is currently under consultation, with a final decision pending from the Trump administration.
https://www.dw.com/en/us-strikes-back-at-chinas-maritime-trade-with-port-fee/a-71814384
Why China isn’t as worried about Trump’s trade war as in 2018
Al Jazeera
As President Donald Trump initiates a new trade war with China, analysts indicate that Beijing is now better prepared than during his first term. Trump has imposed a 20% tariff on Chinese imports, citing China's failure to limit fentanyl exports. This adds to over $400 billion in tariffs previously imposed. In retaliation, China announced tariffs of 10-15% on U.S. agricultural products and earlier tariffs on crude oil and machinery. Analysts note that the U.S. and China have become less economically interdependent since their last trade war, reducing the tariffs' impact. China's share of total U.S. trade has declined, and it has implemented measures to shield its economy from trade shocks, including fiscal stimulus. While China is ready to negotiate, it is cautious about escalating conflict. The initial Chinese tariffs are seen as moderate, aiming to exert political pressure on U.S. agricultural exporters to encourage negotiations. Trump, however, faces risks of overextending his trade policies, as he also targets other countries. The situation remains fluid, with uncertainties regarding the sustainability of Trump's tariffs amid potential domestic economic fallout.
https://www.aljazeera.com/news/2025/3/11/why-china-isnt-as-worried-about-trumps-trade-war-as-in-2018
How will China achieve its 5% growth target?
South China Morning Post
China has consistently met its economic growth targets, setting this year's GDP goal at around 5%. While the fundamentals, such as a recovering property market and rising household savings, suggest potential for faster growth, domestic demand remains weak. Exports have driven recent growth, but tariffs from the U.S. and other countries threaten this model. To sustain growth, China must shift from an export-driven economy to one focused on private consumption, which currently accounts for less than 40% of GDP. Encouraging households to spend their significant savings could unlock higher growth potential.
https://www.scmp.com/opinion/china-opinion/article/3301332/how-will-china-achieve-its-5-growth-target?utm_source=rss_feed
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