Chinese Economy Grows At A 5.2% Annual Pace In April-June Quarter Despite Trade War

Al Arabiya

3 days ago

China's economy slowed in the last quarter as President Donald Trump's trade war escalated, but it still expanded at a robust 5.2 percent pace, the government said Tuesday. That compares with 5.4 percent annual growth in January–March. The government said Tuesday that in quarterly terms the world's second largest economy expanded by 1.1 percent. In the first half of the year, the Chinese economy grew at a 5.3 percent annual pace. A key factor was strong exports. On Monday, China reported that its exports accelerated in June, rising 5.8 percent from a year earlier, up from a 4.8 percent increase in May. A reprieve on the painfully high tariffs on Chinese exports to the United States prompted a rush of orders by companies and consumers as the two sides resumed trade talks. Chinese companies also have expanded exports to and offshore manufacturing in other countries, helping to offset the impact of higher tariffs imposed by the Trump administration.
'Generally speaking, with the more proactive and effective macro policies taking effect…the national economy maintained steady growth with good momentum, showcasing strong resilience and vitality,' the report by the National Bureau of Statistics said.
However, a 0.1 percent decline in consumer prices in the first half of 2025 showed continuing weakness in domestic demand, a long-term challenge for the ruling communist party.