Despite Trump’s tariffs, China’s economy expands 5.2 per cent in April-June quarter

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China's economy grew at a steady 5.2 per cent annual pace in the second quarter of 2025, slightly below 5.4 per cent growth recorded in the first three months of the year, official data released on Tuesday showed. 

On a quarterly basis, the world’s second-largest economy expanded by 1.1 per cent, even as trade tensions with the United States remained elevated.

The National Bureau of Statistics said that the economy grew 5.3 per cent annually in the first half of the year, with exports playing a key role in cushioning the impact of the ongoing trade dispute with the US.

A significant rebound in exports, particularly in June, contributed to the relatively strong growth figures. 

According to government data released Monday, exports surged 5.8 per cent in June from a year earlier, up from a 4.8 per cent rise in May. The improvement was driven in part by a temporary easing of tariffs, which led to a surge in orders from overseas buyers.

A revival in trade talks between Beijing and Washington also encouraged buyers to front-load shipments before any further tariff hikes. Chinese companies have also responded to external pressures by diversifying their export markets and increasing offshore manufacturing capacities.

“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 National Bureau of Statistics said in its report.

Still, a 0.1 per cent decline in consumer prices during the first half of 2025 pointed to persistent weakness in domestic demand—highlighting a structural challenge for the Chinese leadership as it seeks to rebalance the economy toward household consumption.

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