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China’s Q2 Growth Poised Above 5% as Exports Surge Ahead of U.S. Tariffs

Weak domestic demand paired with falling producer prices risks undermining momentum without deeper fiscal stimulus or structural reforms.

Construction workers operate on a construction site in Shanghai, China, July 10, 2025.  REUTERS/Go Nakamura/File Photo
A construction site stands in Shanghai, China April 16, 2025. REUTERS/Go Nakamura/File Photo
People walk on a promenade in Shanghai, China, July 10, 2025.  REUTERS/Go Nakamura/File Photo
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Overview

  • Analysts forecast second-quarter GDP expansion above 5 percent driven by exporters front-loading shipments ahead of planned U.S. tariff hikes
  • China’s producer price index fell 3.6 percent year-on-year in June, marking the steepest decline in nearly two years amid tepid consumer spending
  • A tariff truce struck in Geneva and London is set to expire in August, raising the risk of renewed U.S. levies on Chinese exports
  • Economists at the China Chief Economists Forum led by Lian Ping and analysts at Moody’s Analytics urge forceful fiscal support and structural reforms to bolster household incomes and confidence
  • Official Q2 GDP figures due July 15 will be closely watched for clues on whether Beijing will signal stronger stimulus measures for the second half