BEIJING- On Wednesday, March 5, 2025, the NPC convened for its opening meeting of the annual Two Sessions.

The Two Sessions is the popular name for the back-to-back meetings of two of China’s major political bodies – the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC), China’s legislature. 

On the sidelines of this big event, the Tehran Times has interviewed Xu Yawen, a journalist and commentator with China Global Television Network (CGTN), based in Beijing. She covers the Chinese economy, its foreign affairs, and the China-US relationship. This is her fifth year covering the Two Sessions.

Following is the text of the interview:

Chinese domestic economy and the role of China in the global economy

During this year’s Two Sessions, the target for 2025 was set at around 5%, similar to the previous year, reflecting Chinese policymakers’ strong confidence in stable and high-quality development despite uncertain external challenges such as U.S. tariffs and global economic headwinds.

To achieve its growth target, the 2025 Government Work Report delivered by Chinese Premier Li Qiang on Wednesday said China will implement a more proactive fiscal policy and exercise a moderately loose monetary policy. The plan includes increasing the fiscal deficit from 3% last year to around 4% this year and issuing 1.3 trillion yuan, or 182 billion U.S. dollars, in ultra-long special treasury bonds. These bonds will primarily support strategic and key areas of development, such as infrastructure construction, technological innovation, and green energy initiatives.

In addition, China will stimulate domestic demand through consumer subsidies and investments in green industries and smart manufacturing.

New Quality Productive Forces remain a strategic priority for China’s high-quality development. As the government work report mentions, the country will continue supporting commercial aerospace, biomanufacturing, and 6G technology while accelerating the digital transformation of industries through AI, 5G, and industrial internet.

These measures and policies will help China achieve its long-term structural reform goals, shifting from an export-oriented and investment-led growth model to one driven by consumption and innovation.

China’s growth rate is consistently among the highest of the world’s major economies. In recent years, the country has contributed around 30% to global economic growth annually. This significant contribution underscores China’s essential role in driving not just its own economic expansion but also global economic stability.

Today, China is a major trading partner for more than 150 countries and regions, making it a critical player in the global trading system and the heart of global supply chains. Through initiatives such as BRICS and the Belt and Road Initiative, it has promoted multilateralism and addressed shared challenges.

By promoting infrastructure development, economic cooperation, and sustainable growth, China is not only advancing its development but also contributing to the collective progress of the international community, especially with countries from the Global South.

Tariff battles initiated by the US on the Chinese products, what will be China’s response?

Beijing says the Trump administration’s latest tariffs on China represent unfair trade protectionism that hurts the interests of both sides and undermines the stability of the global trading system.

Seven years ago, when U.S. President Donald Trump launched Trade War 1.0 against China in his first term, US consumers, manufacturers, and farmers paid a higher price for the tariffs. Furthermore, it led to American job losses, government bailouts, manufacturing companies moving out of the U.S., and disrupted global supply chains.

What happened to China during this period? Despite U.S. sanctions and bans, Huawei successfully developed chips, China is developing 6G technology, and Chinese electric vehicles are now sold in over 70 countries, accounting for more than 60% of global EV production. Meanwhile, TikTok has become the most popular social media app in the U.S., and the Chinese startup DeepSeek has overtaken ChatGPT on Apple’s U.S. App Store.

President Trump’s Trade War 1.0 failed to achieve its stated goals and did not Make America Great Again, but it forced China to become more self-reliant in the high-tech sector and strengthen its domestic supply chains and trade relations with the rest of the world.

Recently, President Trump announced an additional 10% tariff on Chinese imports, bringing the total tariffs on Chinese goods to 20%. To safeguard its national interest, China retaliated by announcing 15% tariffs on chicken, wheat, corn, and cotton imports from the U.S, while accelerating its efforts to diversify trade partnerships and boost domestic innovation.

Trade and tariff wars have no winners. China doesn’t want a trade war but peaceful co-existence with the world's largest economy. As Chinese Foreign Minister Wang Yi said during this year’s Two Sessions, “Given the extensive common interests and broad space for cooperation, it is fully possible for China and the United States to become partners helping each other succeed and prosper together.” But if the U.S. insists on containing China’s development rights, “China is ready to fight till the end,” as the Chinese Embassy in the U.S. recently tweeted. 

China’s role in establishing peace and wise governing approach in the world’s current increasing geopolitical tensions.

China’s goal is to build a community with a shared future for mankind, and this is the core tenet of Xi Jinping's Thought on Diplomacy. The vision emphasizes common security, shared prosperity, and sustainable development, offering a constructive alternative to the zero-sum geopolitics that exacerbate global tensions.

China also advocates for a multipolar world order rooted in the principles of the UN Charter. China’s diplomatic efforts are guided by mutual respect, non-interference, and win-win cooperation. This approach is evident in China’s role in facilitating the Iran-Saudi Arabia reconciliation in 2023, which restored diplomatic relations after seven years and boosted confidence in China’s ability to broker peace.

China’s role in the world’s green energy transition?

China’s leadership in the global green transition has become increasingly prominent in recent years. Through technological innovation, industrial upgrading, policy support, and international cooperation, China has accelerated the optimization of its energy structure and provided significant support for global efforts to address climate change and achieve sustainable development goals.

China’s innovation and cost-control capabilities in clean energy technologies have driven the global energy transition. For instance, China’s research, development, and application in the solar and wind energy sectors have reduced solar power costs by approximately 90% and wind power costs by around 80%, significantly lowering the barriers to adopting clean energy.

Moreover, China boasts the world’s most comprehensive clean energy industrial chain, covering every stage from raw materials to manufacturing and application.

For example, China produces 50% of the world’s wind power equipment and 80% of its photovoltaic modules while also being the largest producer of electric vehicles and lithium batteries globally. In 2023 alone, China’s exports of wind and photovoltaic products helped reduce carbon emissions by 810 million tons in recipient countries. This industrial chain advantage meets domestic demand and supports the development of clean energy in other nations through exports.

Take China-Iran cooperation as an example. Iran is rich in solar and wind energy resources. Its geographical location gives it immense solar potential, particularly in the southwestern coastal regions along the Persian Gulf, where sunlight is plentiful year-round. In addition, Iran’s vast coastline and favorable climatic conditions make it rich in wind energy resources, providing an ideal environment for developing large-scale wind power projects.

As the world’s largest renewable energy producer and exporter, China possesses advanced technologies in photovoltaics, wind power, and energy storage and extensive experience in equipment manufacturing, project development, and operational management. China can provide Iran with cutting-edge renewable energy technologies and equipment, helping the country harness its abundant solar and wind resources to diversify its energy mix.

No matter how the international landscape evolves, China's determination and action for proactive climate response never changes. Its leadership in this area will strengthen in the coming years, further solidifying its role as a key driver of the global green transition.