China 2nd-quarter GDP growth slows to 5.2% amid trade friction with U.S.

Kyodo News

6 days ago

BEIJING - China's pace of real economic growth slowed to 5.2 percent year-on-year in the April-June period from 5.4 percent in the previous quarter amid trade tensions with the United States, official data showed Tuesday.
But the inflation-adjusted gross domestic product of the world's second-largest economy exceeded the ambitious growth target of around 5 percent set for 2025, thanks to stimulus measures implemented by Beijing and an agreement with Washington struck in May to de-escalate tensions.
On a quarter-to-quarter basis, China's GDP rose 1.1 percent in the second quarter of 2025, decelerating from 1.2 percent growth in the January-March period. In the first half of 2025, GDP grew 5.3 percent on year.
The trade war between the world's two largest economies intensified in April with the mutual imposition of triple-digit tariffs, before the two sides reached an accord in May to establish a 90-day truce through Aug. 12 and pull back from the hefty duties.
China's central bank cut its key policy interest rate in May and injected liquidity into the market to support an economy hit hard by the trade conflict with the United States.
The National Bureau of Statistics said China's economy "withstood pressure and made steady improvement despite challenges" in the first half of 2025, in an apparent reference to the trade war with the United States.
The Chinese economy "maintained steady growth with good momentum, showcasing strong resilience and vitality," with the government implementing "more proactive and effective macro policies," it said.
"However, we should be aware that there are many unstable and uncertain factors in the external environment," the bureau also said, noting that domestic demand is "insufficient and the foundation for economic recovery and growth needs to be further consolidated."
In order to spur domestic demand, the Chinese government has introduced trade-in programs covering consumer goods such as home appliances, vehicles and smartphones.
In the first half, retail sales of consumer goods increased 5.0 percent on year, with growth accelerating from 4.6 percent in the January-March period.
Investment in fixed assets, excluding rural households, rose 2.8 percent. But investment in real estate development dropped 11.2 percent compared with a 9.9 percent decline in the January-March period, amid a prolonged property sector crisis.
Industrial production in China, dubbed the "world's factory," expanded 6.4 percent. The total value of exports climbed 7.2 percent, while that of imports fell 2.7 percent.
At a World Economic Forum meeting in Tianjin near Beijing in late June, Chinese Premier Li Qiang said Beijing is "confident and capable" of sustaining the country's relatively strong economic growth.