AFP: China’s economy expanded more than five percent in the second quarter of the year, official data showed on Tuesday, after analysts predicted strong exports would provide crucial support despite trade war pressures.
The country’s leadership is fighting a multi-front battle to sustain growth, a challenge made more difficult by Donald Trump’s tariff campaign.
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The US president has imposed tolls on China and most other major trading partners since returning to office in January, threatening Beijing’s exports just as it becomes more reliant on them to stimulate economic activity.
The two superpowers have sought to de-escalate their trade spat after reaching a framework for a deal at talks in London last month, but observers warn of lingering uncertainty.
Trump upped the ante on Monday, warning Russia’s trading partners — which include China — that he will impose “very severe” tariffs reaching 100 percent if Moscow fails to end its war on Ukraine within 50 days.
Western nations have repeatedly urged China — a key commercial ally of Russia — to wield its influence and get Vladimir Putin to stop his three-year-old war with Ukraine.
Official data on Tuesday showed the Chinese economy grew 5.2 percent in April-June, matching a prediction by an AFP survey of analysts.
But retail sales rose 4.8 percent on-year, below the 5.3 percent forecast in a Bloomberg survey of economists, suggesting efforts to kickstart consumption have fallen flat.
However, factory output gained 6.8 percent, higher than the 5.6 percent estimate.
“The national economy withstood pressure and made steady improvement despite challenges,” National Bureau of Statistics (NBS) deputy director Sheng Laiyun told a news conference.
“Production and demand grew steadily, employment was generally stable, household income continued to increase, new growth drivers witnessed robust development, and high-quality development made new strides,” he said.
