China’s Economy Grows 5.2% Amid Trade War Challenges

HONG KONG, China — China’s economy grew 5.2 percent in the second quarter of 2025, according to data released by the National Bureau of Statistics. This growth occurred despite ongoing trade tensions with the United States, where tariffs imposed by President Donald Trump have strained relations.

From April to June, the gross domestic product (GDP) increased by 1.1 percent. Analysts had predicted a growth rate of 5.1 percent, making the actual figure slightly above expectations. However, this rate is lower than the 5.4 percent growth seen in the first quarter.

The Chinese government’s strategy to stabilize the economy has included stimulus measures aimed at boosting domestic consumption. A spokesperson for the National Bureau of Statistics stated that consumption has become the backbone of growth, with predictions of continued expansion in the consumer market.

China has seen a 6.4 percent rise in manufacturing, driven by increased demand for products such as 3D printing equipment and electric vehicles. The services sector has also experienced growth, contributing to the overall economic performance.

Despite these gains, some economists remain cautious. Lynn Song, chief economist for Greater China at ING, warned that challenges, such as tariff uncertainty and the potential for further escalations, could impact growth in the latter half of the year. Exports rose by 5.8 percent year-on-year in June, aided by shipments to non-US markets.

China’s trade relations with the United States are currently governed by a temporary agreement to relax some tariffs. As of May, U.S. tariffs on Chinese exports had been amended, allowing for some respite amid ongoing negotiations. Both nations must decide by August 12 whether to extend this agreement or face a return to higher tariffs.

Looking ahead, analysts predict that achieving the full-year growth target of around 5 percent may be difficult. Zichun Huang, a China economist at Capital Economics, suggested that the reported growth figures may overstate the actual economic strength, noting that the tailwind from fiscal support could diminish.

As China’s economy continues to navigate these complexities, the government is expected to introduce further policy measures aimed at securing growth and addressing challenges posed by external factors, including the trade dispute with the U.S.