GUANGZHOU, China — In the first quarter of the year, China’s economic activity saw a significant surge, surpassing expectations despite the looming threat of new tariffs announced by the Trump administration. Gross domestic product grew by 5.4% from January to March compared to the same period last year, according to official data. This growth was partly fueled by robust industrial activity and exports, alongside government policies aimed at stimulating domestic demand. During this period, the Trump administration imposed new tariffs on Chinese imports at 20%. Although Beijing has remained defiant, analysts predict that China’s growth will slow in the current quarter due to these tariffs. Ting Lu, an analyst at Nomura, noted that replacing lost exports with domestic demand will be challenging for China. UBS downgraded China’s 2025 growth forecast to 3.4%, assuming current tariff hikes persist and additional stimulus is introduced. Amidst the escalating trade war, China has filed complaints with the World Trade Organization and appointed Li Chenggang as its new trade envoy.
— new from NPR
