China's economy grew at a robust pace of 5,2 percent in the last quarter, the country's government announced today.
That's a jump from an annual growth rate of 5,4 percent in the January-March period. The government said the world's second-largest economy grew by 1,1 percent on a quarterly basis.
A key factor behind the latest upbeat data was strong exports. On Monday, China said its exports accelerated in June, rising 5,8 percent from a year earlier and up from 4,8 percent in May.
The production of high-tech products, vehicles, and electrical machinery and equipment increased by about 10 percent compared to the same period last year.
The postponement of high tariffs on Chinese exports to the United States has sparked a surge in orders from companies and consumers. Chinese companies have also expanded exports to other countries, such as Vietnam, and production overseas, helping to cushion the impact of higher tariffs imposed by the Trump administration.
"Generally speaking, with the entry into force of more proactive and effective macro policies, the national economy has maintained stable growth with good momentum, demonstrating strong resilience and vitality," the National Bureau of Statistics said in a report.
However, a 0,1 percent drop in consumer prices in the first half of 2025 showed continued weakness in domestic demand, posing a long-term challenge for the ruling Communist Party as China's population declines and ages. These problems have deepened during and after the Covid-19 pandemic.
Price cuts by Chinese manufacturers to help them compete in overseas markets are contributing to deflationary pressures that ultimately erode their competitiveness, Louise Lu of Oxford Economics said in a report.
Chinese leaders have set a growth target of 5 percent this year, in line with last year's growth. The continuation of US tariffs of up to 245 percent if Washington and Beijing fail to meet an Aug. 12 deadline for a new trade deal could hamper the recovery of exports, a key driver of growth and jobs.
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