Watan-On Wednesday, China announced that its GDP grew by 5.4% in the first quarter, surpassing expectations.
Beijing and Washington are engaged in a trade war after U.S. President Donald Trump imposed additional tariffs on both the country’s competitors and its partners, primarily targeting the Asian giant.
Trump initially imposed tariffs on Chinese imports, accusing Beijing of being involved in the supply of the addictive substance fentanyl. He then sharply raised these tariffs in recent times in response to what the U.S. considers unfair Chinese trade practices.
Since the beginning of this year, Trump has imposed tariffs of 145% on many Chinese imports, adding to the tariffs imposed by previous administrations.
China’s Economy Grows 5.4% in Q1 Despite U.S. Tariffs and Domestic Challenges
In response, Beijing imposed additional tariffs of 125% on U.S. imports.
Sheng Laiyun, deputy head of the National Bureau of Statistics, said in a press conference, “Currently, the high tariffs imposed by the U.S. are putting a certain amount of pressure on our foreign trade and economy.”
However, the Chinese official reassured that “this will not change the overall trend of the Chinese economy, which continues to improve in the long term.”
On Wednesday, the bureau released economic data, providing an initial glimpse of the impact of the current trade tensions on the Chinese economy, which is already struggling with a real estate crisis and weak domestic consumption.
According to the National Bureau of Statistics, “Preliminary estimates show that GDP in the first quarter reached 31,875.8 billion yuan, a 5.4% year-on-year increase at constant prices.”
The bureau added, “The foundations for a sustained economic recovery and growth still need to be strengthened,” emphasizing that stimulating the economy requires “more proactive and effective macroeconomic policies.”
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