The Chinese economy surprised resilience in the first quarter of 2025 by recording a year-on-year rise of 5.4% in its GDP, which exceeded analysts' forecast of 5.1%. The growth in the economy was led by robust industrial output, rising by 7.7%, and an unprecedented surge in retail sales, by 5.9% in March .
However, this economic momentum preceded the imposition of higher U.S. tariffs on Chinese imports, which have risen from 10% to 145%. China responded by raising its own tariffs, increasing duties on U.S. imports to 125%
The real estate sector continues to be an issue, with real estate investment declining 9.9% in the first quarter, as China's housing market continues to languish
In preparation for these trends, Chinese officials have hinted at the potential for additional stimulus efforts to boost the economy and mitigate the impact of the increasing trade tensions
This is an indication of China's delicate balancing act between stimulating economic growth and navigating complex global trade realities.