China Reports 5.4% Q1 Growth as Trade Tensions with U.S. Escalate

China's economy outperformed forecasts in Q1 2025, but analysts warn that intensified tariffs could slow growth in the coming quarters.

China's GDP grew by 5.4% in Q1 2025, surpassing analyst predictions of 5.2%, according to official figures from China's National Statistics Office.
Retail sales and industrial production also exceeded expectations, with industrial output rising by 7.7% compared to the 5.9% forecasted by analysts.
The U.S.-China trade conflict escalated in April, with tariffs on Chinese goods reaching 145% and China's retaliatory tariffs on U.S. goods hitting 125%.
Economic analysts predict that the trade tensions will likely impact China's growth in Q2 and beyond, despite its strong start to the year.
The Chinese government continues to implement domestic stimulus measures, such as consumer incentive programs, to counteract internal challenges like weak demand and a real estate slowdown.