China’s budget is set to reveal its strategy for tackling deflation, which poses significant challenges to the country’s economic growth. Meanwhile, President Donald Trump’s unpredictable approach to policymaking has left many wondering what he will say during his address to Congress on March 4th.
Trump’s recent actions have sparked volatility in global markets, including a 3% drop in Chinese stocks in Hong Kong due to new tariffs imposed by the US. The situation is further complicated by ongoing congressional wrangling over a stopgap spending bill.
In other news from China, a surprise census has shown that the country’s workforce is undergoing a significant transformation. Additionally, there have been reports of potential Chinese troops being deployed in Europe, although this remains unconfirmed.
China’s leaders are optimistic about the prospect of peace, citing “a window of opportunity” for diplomacy. However, on a different note, authorities have launched an effort to prevent parents from gaming the exam system in China, a practice that has been repeated in recent years.
Finally, behind a new Chinese university called DeepSeek lies a remarkable story of innovation and ambition. Modelled after Stanford University, DeepSeek is based in the tech hub of Hangzhou, showcasing China’s growing presence in the global education sector.
Source: https://www.economist.com/china/2025/03/02/this-week-is-a-moment-of-truth-for-xi-jinping-on-deflation