New Delhi, March 3 -- As President Xi Jinping prepares for China's largest political event of the year, the National People's Congress, the country shows signs of economic recovery. Key breakthroughs in artificial intelligence and a new embrace of private entrepreneurs have sparked a strong equity rally. However, looming tariffs from former President Donald Trump threaten to derail momentum, putting Beijing's growth targets to the test.

Amid the uncertainty, China's policymakers are expected to unveil bold fiscal measures, including an increase in the budget deficit, to combat the economic challenges posed by deflation, a property slump, and the ongoing trade war with the US. As inflation remains subdued and consumption weak, China's lea...