Space News from SpaceDaily.com
China's economy grows 5.2% on trade war truce
ADVERTISEMENT


Beijing, July 15 (AFP) Jul 15, 2025
China's economy expanded more than five percent in the second quarter of the year, official data showed on Tuesday, after analysts predicted strong exports would provide crucial support despite trade war pressures.

The country's leadership is fighting a multi-front battle to sustain growth, a challenge made more difficult by Donald Trump's tariff campaign.

The US president has imposed tolls on China and most other major trading partners since returning to office in January, threatening Beijing's exports just as it becomes more reliant on them to stimulate economic activity.

The two superpowers have sought to de-escalate their trade spat after reaching a framework for a deal at talks in London last month, but observers warn of lingering uncertainty.

Trump upped the ante on Monday, warning Russia's trading partners -- which include China -- that he will impose "very severe" tariffs reaching 100 percent if Moscow fails to end its war on Ukraine within 50 days.

Western nations have repeatedly urged China -- a key commercial ally of Russia -- to wield its influence and get Vladimir Putin to stop his three-year-old war with Ukraine.

Official data on Tuesday showed the Chinese economy grew 5.2 percent in April-June, matching a prediction by an AFP survey of analysts.

But retail sales rose 4.8 percent on-year, below the 5.3 percent forecast in a Bloomberg survey of economists, suggesting efforts to kickstart consumption have fallen flat.

However, factory output gained 6.8 percent, higher than the 5.6 percent estimate.

"The national economy withstood pressure and made steady improvement despite challenges," National Bureau of Statistics (NBS) deputy director Sheng Laiyun told a news conference.

"Production and demand grew steadily, employment was generally stable, household income continued to increase, new growth drivers witnessed robust development, and high-quality development made new strides," he said.


- Optimism -


Data from the General Administration of Customs on Monday showed exports rose much more than expected in June, helped by the US-China trade truce.

Imports also rose 1.1 percent, higher than the 0.3 percent gain predicted and marking the first growth this year.

Customs official Wang Lingjun told a news conference on Monday that Beijing hoped "the US will continue to work together with China towards the same direction", state broadcaster CCTV reported.

The tariff truce was "hard won", Wang said.

"There is no way out through blackmail and coercion. Dialogue and cooperation are the right path," he said.

However, many analysts are anticipating slower growth in the next six months of the year, with persistently sluggish domestic demand proving a key drag.

Data released last week showed that consumer prices edged up in June, barely snapping a four-month deflationary dip, but factory gate prices dropped at their fastest clip in nearly two years.

The producer price index, which measures the price of wholesale goods as they leave the factory, declined 3.6 percent year-on-year last month, extending a years-long negative run.

Economists argue that China needs to shift towards a growth model propelled more by domestic consumption than the traditional key drivers of infrastructure investment, manufacturing and exports.

Beijing has introduced a slew of measures since last year in a bid to boost spending, including a consumer goods trade-in subsidy scheme that briefly lifted retail activity.


ADVERTISEMENT





Space News from SpaceDaily.com
New drop tests advance Space Rider precision landing system
Ancient river systems reveal Mars was wetter than we thought
Axiom-4 astronauts return to earth

24/7 Energy News Coverage
Nanosheet breakthrough enables low temperature heat storage through water trapping
EU climate VP seeks 'fair competition' with China on green energy
Underappreciated threat of nanoplastic pollution revealed in Atlantic Ocean study

Military Space News, Nuclear Weapons, Missile Defense
Russia fires 136 drones at Ukraine ahead of Trump-NATO head meeting
China says German plane laser claim 'inconsistent with facts'
Inside America's Orbital Defense Shift: Satellites That Track Nuclear Launches

24/7 News Coverage
Rivers choose their path based on erosion - a discovery that could transform flood planning and restoration
Tens of millions of tons of nanoplastics detected adrift in North Atlantic
Peatland restoration shows measurable climate benefits in under a decade



All rights reserved. Copyright Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.