China has warned it is ready for "any type of war" in response to President Donald Trump's tariffs on Chinese goods. The statement comes as Beijing boosts defense spending and tensions escalate.

Chinese President Xi Jinping reads during a speech by Premier Li Qiang at the opening session of the National Peoples Congress, or NPC, at the Great Hall of the People in Beijing on March 5, 2025. Charlie Campbell is a correspondent at TIME, based in the Singapore bureau.

Two major speeches were delivered by two of the world’s most powerful leaders this week, on opposite sides of the planet — Donald Trump and Li Qiang.

Li sets out goals for economic growth, jobs, the private sector, tech and Hong Kong at opening ceremony of China’s top legislature.

As Chinese leaders meet in Beijing, they are striking a confident posture despite serious challenges to the economy and growing pressure from the United States.

Chinese Foreign Minister Wang Yi says China will continue to retaliate to the United States’ “arbitrary tariffs” and accused Washington of “meeting good with evil” in a press conference Friday on the sidelines of the annual parliamentary session.

Li Qiang said China would strive to work with regular Taiwanese to realize the rejuvenation of the Chinese nation.

China has set an ambitious target of “around 5%” growth for 2025, in a defiant show of confidence as it braces for the fallout from escalating American tariffs on its export-driven economy.

Trade tensions between the world's two leading economies are set to escalate on Monday, as Beijing begins levying tariffs on certain US agricultural goods in retaliation for President Donald Trump's latest hike on Chinese imports.

China has been shifting new borrowing to the central government in recent years due to mounting debt risks at the local level. While outstanding sovereign bonds account for less than 30% of national GDP, some economists estimate local government debt could be as high as 100% of the size of the economy.

The third session of the 14th National People's Congress of China opened on March 5, and Chinese Premier Li Qiang delivered the government work report, setting the 2025 economic growth target at about 5%,

Chinese Premier Li Qiang's renewed emphasis on consumption isn't being matched by policy firepower, say economists, who warn that the trade war with Washington and other challenges at home will likely keep policymakers in a prolonged battle with deflation.