China’s Economy Defies Trade Wars, Grows 5.2% in Q2 Thanks to Export Surge

China’s Economy Defies Trade Wars, Grows 5.2% in Q2 Thanks to Export Surge

 

Despite mounting trade tensions with the United States, China’s economy posted a solid 5.2% growth in the second quarter of 2025, driven by a surge in exports, according to official data released today.


This figure marks a slight dip from the 5.4% recorded in Q1 but aligns with analysts’ expectations, reflecting continued economic resilience in a turbulent global climate.


Industrial production rose sharply in June, posting 6.8% growth versus expectations of 5.6%, thanks to strong demand in non-U.S. markets, which helped offset tariff-related pressures.


Conversely, retail sales underperformed, rising just 4.8% against projections of 5.3%, due to early discounting during shopping festivals and regional disruptions in spending programs.


Investment in fixed assets increased by 2.8% in the first half, falling short of the anticipated 3.6%.


According to National Bureau of Statistics spokesperson Sheng Laiyun, the domestic economy faced internal and external challenges but maintained stable growth, supported by structural flexibility.


Bond yields on 10-year government debt held steady at 1.66%, while the offshore yuan made modest gains following the data release.


These results reflect China’s ongoing "dual circulation" strategy, where strong exports offset sluggish domestic demand.

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