China Eyes 5 Percent Growth despite Trade War

China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP
China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP
TT

China Eyes 5 Percent Growth despite Trade War

China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP
China's President Xi Jinping arrives for the opening session of the National People's Congress (NPC) on Wednesday. Pedro Pardo / AFP

China on Wednesday set an annual growth target of around five percent, vowing to make domestic demand its main economic driver as an escalating trade war with the United States hit Beijing's exports.

Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this year as it battles stuttering employment for young people, stubbornly low consumer demand and a persistent property sector debt crisis, reported AFP.

The headline growth figure announced by Premier Li Qiang at an annual Communist Party conclave was broadly in line with an AFP survey of analysts, though experts say it is ambitious considering the scale of the country's economic challenges.

Under the plans, some 12 million new jobs will be created in Chinese cities as Beijing pushes for two percent inflation this year.

A government work report vowed to make domestic demand the "main engine and anchor" of growth, adding that Beijing should "move faster to address inadequate domestic demand, particularly insufficient consumption".

And in a rare move, Li said China would hike its fiscal deficit by one percentage point, something that analysts have said will give Beijing more latitude to tackle its economic slowdown.

Dylan Loh, an assistant professor at Singapore's Nanyang Technological University, said Beijing's growth target would be "tough but possible".

He said low consumption was a "confidence issue", adding that "if people are, in their own calculations, worried about spending -- especially on big-ticket items -- it is far harder to address".

Major Asian markets traded up on Wednesday, reversing their losses a day after US President Donald Trump went ahead with imposing more blanket tariffs on Chinese imports following a similar move last month.

US tariffs are expected to hit hundreds of billions of dollars in total trade between the world's two largest economies.

"Internationally, changes unseen in a century are unfolding across the world at a faster pace," the government work report said.

"Unilateralism and protectionism are on the rise," it warned.

And "domestically, the foundation for China's sustained economic recovery and growth is not strong enough," added the report.

Fight to the 'bitter end'

Chinese exports reached record levels last year.

But as thousands of delegates congregated in Beijing's opulent Great Hall of the People for the opening session of the National People's Congress, the second of China's "Two Sessions" political meetings this week, sentiments were clouded by a broadening trade war under Trump.

Beijing on Tuesday announced its own measures in retaliation for Washington's latest tariff hike -- and vowed it would fight a trade war to the "bitter end".

The moves will see China impose levies of up to 15 percent on a range of US agricultural products including soybeans, pork and wheat starting from early next week.

Beijing's countermeasures represent a "relatively muted response" in comparison to Trump's all-encompassing tariffs, wrote Lynn Song, chief economist for Greater China at ING.

"The retaliation could have been a lot stronger, and with every further escalation the risks are also rising for a stronger response," he added.

Analysts say authorities may announce further plans this week to boost the economy -- adding to a string of aggressive support measures announced late last year.

More help needed

Also on Wednesday, China disclosed a 7.2 percent rise in defense spending in 2025, as Beijing rapidly modernizes its armed forces in the face of regional tensions and strategic competition with the US.

Geopolitical tensions between Beijing and Washington are set to intensify this year, analysts say.

The status of self-governed Taiwan -- claimed by China as part of its sovereign territory -- is chief among the sources of friction.

The defense spending will finance Beijing's frequent dispatches of military aircraft around Taiwan, intended to put pressure on authorities in the democratic island.

It also came after Trump proposed a coordinated halving of the military budgets of the United States, Russia and China.

China has not agreed to such a move, with a foreign ministry spokesperson suggesting last month that any reductions in military expenditure should be conducted by Washington first.



China Shipping Giant Cosco Resumes Bookings to Some Gulf Countries

A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)
A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)
TT

China Shipping Giant Cosco Resumes Bookings to Some Gulf Countries

A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)
A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)

Chinese shipping giant Cosco said on Wednesday that it was resuming new bookings for container shipments to some Gulf countries, after a three-week suspension in response to the Middle East war.

The state-owned, Shanghai-based firm was among several major shipping groups to pause operations in the Strait of Hormuz, a key waterway through which one-fifth of the world's oil and gas passes normally.

Tehran has said several times it was not targeting friendly nations, but transits through the Strait had nevertheless largely ground to a halt.

Iran said in a statement circulated by the International Maritime Organization on Tuesday that "non-hostile vessels" would be granted safe passage through the waterway.

Cosco "resumed new bookings for general cargo containers for shipments" from the "Far East" to the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Iraq "with immediate effect", according to a company statement.

It did not mention shipments travelling in the opposite direction, from the Gulf.

"New booking arrangements and the actual carriage are subject to change due to the volatile situation in the Middle East region," it added.

Cosco, which operates one of the world's largest oil tanker fleets, announced on March 4 that it would suspend new bookings for services for routes through the Strait of Hormuz owing to the "escalating conflicts in the Middle East region and resultant restrictions on maritime traffic".


Qatar Emir Makes Minor Changes to QIA Board

People visit a mall in Doha on March 23, 2026. (Photo by AFP)
People visit a mall in Doha on March 23, 2026. (Photo by AFP)
TT

Qatar Emir Makes Minor Changes to QIA Board

People visit a mall in Doha on March 23, 2026. (Photo by AFP)
People visit a mall in Doha on March 23, 2026. (Photo by AFP)

Qatar's Emir Sheikh Tamim bin Hamad Al Thani issued a decree on Wednesday ⁠making minor changes to ⁠the board of the ⁠Qatar Investment Authority, while keeping Sheikh Bandar bin Mohammed bin Saud Al Thani as chairman and Sheikh ⁠Mohammed ⁠bin Hamad bin Khalifa Al Thani as deputy chairman.

The decision stipulated that QIA’s Board of Directors would be restructured as follows: Sheikh Bandar bin Mohammed bin Saud Al Thani as Chairman, Sheikh Mohammed bin Hamad bin Khalifa Al Thani as Deputy Chairman, Ali bin Ahmed Al Kuwari as a member, Saad bin Sherida Al Kaabi as a member, Sheikh Faisal bin Thani bin Faisal Al-Thani as a member, Nasser bin Ghanim Al Khelaifi as a member, and Hassan bin Abdullah Al Thawadi as a member.

The decision is effective starting from its date of issue and is to be published in the official gazette.


Oil Falls More Than 5% and World Shares Gain Over Possible de-escalation of Iran War

A man fills his car with petrol at the petrol station in Port Dickson, Negri Sembilan, Malaysia, 25 March 2026. EPA/FAZRY ISMAIL
A man fills his car with petrol at the petrol station in Port Dickson, Negri Sembilan, Malaysia, 25 March 2026. EPA/FAZRY ISMAIL
TT

Oil Falls More Than 5% and World Shares Gain Over Possible de-escalation of Iran War

A man fills his car with petrol at the petrol station in Port Dickson, Negri Sembilan, Malaysia, 25 March 2026. EPA/FAZRY ISMAIL
A man fills his car with petrol at the petrol station in Port Dickson, Negri Sembilan, Malaysia, 25 March 2026. EPA/FAZRY ISMAIL

Oil prices fell more than 5% and world shares gained on Wednesday over the possibility of a de-escalation of the Iran war and negotiations between the United States and Iran. US futures were up 0.9%.

In early European trading, Britain's FTSE 100 rose 1% to 10,072.60. France's CAC 40 was up 1.4% to 7,855.31, while Germany's DAX was 1.6% higher at 22,989.80.

Tokyo’s Nikkei 225 was up 2.9% to 53,749.62. South Korea’s Kospi gained 1.6% to 5,642.21.

Hong Kong’s Hang Seng rose 1.1% to 25,335.95, while the Shanghai Composite index was 1.3% higher at 3,931.84. Labubu doll maker Pop Mart's Hong Kong-listed shares fell 22.5%, after it announced annual revenue for last year that was largely in line with analysts’ estimates.

Australia’s S&P/ASX 200 climbed 1.9%. Taiwan’s Taiex was up 2.5%.

US President Donald Trump's claims of progress being made from talks with Iran this week and his postponement on Monday of a deadline to “obliterate” Iran’s power plants over the reopening of the Strait of Hormuz have also fueled optimism that an end to the Iran war could come soon.

Trump's administration has offered a 15-point ceasefire plan to Iran, but an Iranian military spokesperson mocked the US’ attempt at a ceasefire deal Wednesday.

With the Strait of Hormuz being a key waterway for crude oil and liquefied natural gas transport, oil and gas prices have spiked and fluctuated in recent days.

Oil prices fell again on growing hopes for a de-escalation. Brent crude, the international standard, fell 5.2% to $94.97 per barrel. It was around $104 on Tuesday.

Benchmark US crude was down 5.3% early Wednesday to $87.44 a barrel.

While Iran has denied negotiations were taking place, and attacks in the Middle East continued, Pakistan has offered to host talks between Washington and Tehran. And as Trump raised optimism of a de-escalation of the war, at least 1,000 more American troops from the 82nd Airborne Division are said to be deployed to the Middle East in the coming days.

On Tuesday, US stocks closed lower. The S&P 500 lost 0.4% to 6,556.37. The Dow Jones Industrial Average edged down 0.2% to 46,124.06, while the Nasdaq composite was 0.8% lower to 21,761.89.

Shares of Estee Lauder sank more than 9%, following confirmation that the US-listed company is in merger talks with Spanish beauty and perfume group Puig.

In other dealings early Wednesday, gold prices resumed its rise after falling earlier. It dropped in part because of rising US Treasury yields over dimming expectations of a Federal Reserve rate cut after the spike in oil prices threatened to fuel global inflation.

The price of gold was up 3.6% early Wednesday to $4,561.90 per ounce. It was above $5,000 earlier this month.

The US dollar was at 158.84 Japanese yen, up from 158.69. The euro was trading at 1.1602, down from $1.1608.