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Reading: China beat progress expectations in first quarter of 2025, however US tariffs dim outlook
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The Wall Street Publication > Blog > Economy > China beat progress expectations in first quarter of 2025, however US tariffs dim outlook
Economy

China beat progress expectations in first quarter of 2025, however US tariffs dim outlook

Editorial Board Published April 16, 2025
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China beat progress expectations in first quarter of 2025, however US tariffs dim outlook
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Rep. Warren Davidson, R-Ohio, evaluates President Donald Trump’s tariff insurance policies and shares his tackle the administration’s ongoing battle with federal judges on ‘The Bottom Line.’

China beat first-quarter financial progress expectations, however the outlook for the rest of 2025 stays dim as Beijing braces for the affect of hefty U.S. tariffs. 

The newest knowledge signifies China’s gross home product (GDP) grew 5.4% within the January-March quarter from a 12 months earlier, beating analysts’ expectations in a Reuters ballot for an increase of 5.1%.

In the meantime, retail gross sales, a key gauge of consumption, to simply underneath 6% year-on-year in March after gaining 4% in January-February, whereas manufacturing unit output progress quickened to 7.7% from 5.9% within the first two months. Each numbers topped analysts’ forecasts. 

However these figures preceded President Donald Trump ratcheting up tariffs on Chinese language items to eye-watering ranges, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying commerce conflict between the world’s two greatest economies that markets worry will result in a world recession.

RIVIAN CEO DISCUSSES TARIFFS, SAYS EV MAKER HAS ‘VERY US-CENTRIC SUPPLY CHAIN’

Gantry cranes stand close to transport containers at Yangshan Port exterior of Shanghai, China, April 15, 2025. (REUTERS/Go Nakamura / Reuters)

Analysts additionally say a surge in China’s March exports – pushed by factories dashing shipments to beat the newest Trump tariffs – will reverse sharply within the months forward because the hefty U.S. levies take impact. 

CHINESE TIKTOK USERS MOCK TARIFFS, TELLING PEOPLE TO BUY BRANDS LIKE NIKE DIRECT

Whereas a number of different international locations have been swept up in U.S. tariffs, Trump has focused China for the largest levies. 

Final week, Trump lifted duties on China to 145%, prompting Beijing to jack up levies on U.S. items to 125% and dismissing U.S. commerce actions as “a joke.”

Xi and Lam in Hanoi

Vietnam’s Communist Celebration Normal Secretary To Lam (R) and China’s President Xi Jinping (L) depart after their assembly on the Workplace of the Celebration Central Committee in Hanoi on April 14, 2025.  (NHAC NGUYEN/POOL/AFP through Getty Photos / Getty Photos)

On a quarterly foundation, the economic system expanded 1.2% within the first quarter, slowing from 1.6% in October-December. 

For 2025, China’s economic system is anticipated to develop at a subdued 4.5% tempo year-on-year, the Reuters ballot confirmed, slowing from final 12 months’s 5.0 tempo and falling in need of the official goal of round 5.0%.

HOW TRUMP’S TARIFFS COULD IMPACT THE LABOR MARKET

Policymakers have repeatedly stated the nation has ample room and instruments to bolster the economic system and premier Li Qiang this month pledged to roll out extra assist measures.

TRUMP-CHINA FACTORY

President Donald Trump, left, and a employee is engaged on a versatile circuit board manufacturing line in Suining, China. (Bonnie Money/UPI/Bloomberg, left, and Costfoto/NurPhoto through Getty Photos, proper. / Getty Photos)

Beijing has put boosting consumption as the highest precedence this 12 months because it tries to cushion the affect of the Trump administration’s tariffs on its commerce sector. 

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The Politburo, a high decision-making physique of the ruling Communist Celebration, is anticipated to carry a gathering later this month to set its coverage agenda for the approaching months.

Reuters contributed to this report. 

TAGGED:beatChinadimexpectationsgrowthoutlookquartertariffs
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