China’s GDP expanded by 1.1 percent from April to June despite US tariffs, official data indicates.
According to official data, China’s economy grew by more than 5 percent in the second quarter, showing that Beijing’s annual growth target is still on track despite US President Donald Trump’s trade war.
Data from China’s National Bureau of Statistics revealed that the country’s gross domestic product (GDP) increased by 1.1 percent from April to June.
On an annualised basis, China’s economy grew by 5.3 percent in the first half of the year, staying in line with Beijing’s full-year target of about 5 percent growth.
The statistics agency stated that the national economy demonstrated steady growth with good momentum in the first half of the year, displaying strong resilience and vitality, thanks to more proactive and effective macro policies.
Chief economist for Greater China at ING, Lynn Song, described China’s economic performance as “certainly encouraging” compared to the “very downbeat expectations at the start of the year”.
Song noted that trade data benefited from frontloading in the first quarter and held up better than expected in the first half as a whole, resulting in strong industrial production.
However, Song warned that the second half of the year could be more challenging due to tariff uncertainty, with key deadlines approaching in August. While a return to peak tariffs is not expected, there is a possibility of further escalation.
Despite Trump’s tariffs, exports rose by 5.8 percent year-on-year in June, as shipments to non-US markets and a reprieve from the highest duties benefited trade.
Earlier this year, US tariffs on Chinese goods reached as high as 145 percent. In May, the Trump administration reached a deal with Beijing to reduce taxes on each other’s exports for at least 90 days.
Under the agreement, Chinese imports to the US are subject to a minimum duty of 30 percent, while US exports face a 10 percent rate.
The two sides have until August 12 to extend their truce or reach a new agreement to prevent the tariffs from reverting to their higher rates.
Data from China’s National Bureau of Statistics revealed that the country’s gross domestic product (GDP) increased by 1.1 percent from April to June.
On an annualised basis, China’s economy grew by 5.3 percent in the first half of the year, staying in line with Beijing’s full-year target of about 5 percent growth.
The statistics agency stated that the national economy demonstrated steady growth with good momentum in the first half of the year, displaying strong resilience and vitality, thanks to more proactive and effective macro policies.
Chief economist for Greater China at ING, Lynn Song, described China’s economic performance as “certainly encouraging” compared to the “very downbeat expectations at the start of the year”.
Song noted that trade data benefited from frontloading in the first quarter and held up better than expected in the first half as a whole, resulting in strong industrial production.
However, Song warned that the second half of the year could be more challenging due to tariff uncertainty, with key deadlines approaching in August. While a return to peak tariffs is not expected, there is a possibility of further escalation.
Despite Trump’s tariffs, exports rose by 5.8 percent year-on-year in June, as shipments to non-US markets and a reprieve from the highest duties benefited trade.
Earlier this year, US tariffs on Chinese goods reached as high as 145 percent. In May, the Trump administration reached a deal with Beijing to reduce taxes on each other’s exports for at least 90 days.
Under the agreement, Chinese imports to the US are subject to a minimum duty of 30 percent, while US exports face a 10 percent rate.
The two sides have until August 12 to extend their truce or reach a new agreement to prevent the tariffs from reverting to their higher rates.
