Official data on Tuesday with official data suggests that China’s economy increased by 5.2% year-on-year in the second quarter of 2025 amidst the ongoing trade tension with the United States.
The growth of the second quarter was slightly lower at the first speed of 5.4%, but keeps the government on track to meet the full-year target of “Around”.
The first-aid performance was supported by state stimulation and there was a stagnation in the US-China trade, allowing exporters to take out the shops ahead of the potential tapiff hike.
Jhang, the chief economist of the Pinpoint Asset Management, said, “China has partly gained a growth above 5% in Q2 due to loading in front of exports.”
Continuous growth is not permanent
However, analysts have warned that development may not be sustainable. Weak consumers continue to weight on the demand for trust, falling prices and an intensive property crisis.
Economist Dan Wang, an economist of the Eurasia Group, said, “The real estate crisis remains a major medium drag on the local government budget.”
Meanwhile, investors are breaking for a weak second event because additional stimulation is expected to agrees in upcoming polishing in July.
At the same time, according to Economic Research and Consulting firm Forecast Institutes, Chinese companies are now responsible for 16% of global exports, doubling Germany, exaging bets in a rapidly competitive global trade scenario.
What was the trade between China and America?
Tension between Washington and Beijing is increasing as the two nations are colliding on many issues including Taiwan, emerging technologies and most importantly, business.
Increasing trade tension, the US President announced a 145% tariff on Chinese goods in April. However, the interaction between two important economies in May reduced the US Taf to 30% for 90 days to allow for talks, while China reduced its taxes on American goods by 125%.
The US-China competition is already affecting the global economy and politics.
If the trade war between the two increases once again, China may try to use the European Union market to absorb the excess of Chinese production.
In turn, the US may redefine goods manufactured in the European Union through direct investment in the form of Chinese products and demand high levy from European Union businesses.
Mouahhile, as America tightens trade restrictions with some Latin American countries, China is expanding its influence in South America.
Edited by: saim dusan inayatullah
