China growth beats expectations as Trump tariffs loom

China's economy has surprised many experts by growing faster than expected, even as it faces serious challenges from US tariffs and ongoing troubles in the property market. According to official data, the world's second largest economy expanded by 5. 2 percent in the three months ending in June, compared to the same period last year. This growth rate is slightly higher than the 5. 1 percent that most economists predicted, though it is a bit lower than the growth seen in the previous quarter.

The Chinese government has taken several steps to support the economy, including new policies and a temporary trade truce with the United States. The National Bureau of Statistics in China said that the economy 'withstood pressure and made steady improvement despite challenges. ' One of the main reasons for this growth is a 6. 4 percent increase in manufacturing. Factories in China have been producing more high-tech products, such as 3D printers, electric vehicles, and industrial robots, which are in high demand both in China and around the world. The services sector, which includes areas like transportation, finance, and technology, also contributed to the positive results.

However, not all parts of the economy are doing well. In June, retail sales only grew by 4. 8 percent compared to the previous year, which is a slowdown from the 6. 4 percent growth seen in May. This means that people are spending less money in stores, which could be a sign of weaker consumer confidence. At the same time, the prices of new homes in China fell at the fastest rate in eight months, showing that the real estate market is still struggling despite several rounds of government support.

Some analysts had expected the US tariffs to have a bigger negative impact on China's economy, but the country has shown a lot of resilience. Economist Gu Qingyang from the National University of Singapore said that growth was helped by companies rushing to export goods before new tariffs or changes to export rules could take effect. However, he also warned that the second half of the year could be more uncertain, and that the government might need to introduce even stronger measures to keep the economy growing. Still, he believes that reaching the government's target of 5 percent annual growth is possible.

Not everyone is so optimistic. Some economists think China might miss its goal of 'around 5 percent' growth this year. Dan Wang, a director at the Eurasia Group, told the BBC that the real question is how much China might fall short. He believes the government will make sure growth does not drop below 4 percent, which is seen as the minimum acceptable level for political reasons.

The trade war between China and the US began when both countries put high tariffs on each other's goods. The US imposed a 145 percent tax on Chinese imports, and China responded with a 125 percent tax on some US products. These tariffs have been paused for now while both sides negotiate a long-term trade deal, with a deadline set for August 12. The US has also placed heavy tariffs on countries that have close economic ties with China. Despite all these challenges, China's economy has managed to stay strong, but the future remains uncertain as the country faces both domestic and international pressures.