China’s economy growth has actually reached 5.4% in the first quarter of 2025, surprisingly outpacing most expectations despite the ongoing and escalating US tariffs situation. This rather unexpected performance comes just before Donald Trump’s new tariff policy really took full effect, with levies now standing at an unprecedented 145% on Chinese imports. The global market reaction, at the time of writing, remains somewhat cautious as the full trade war impact continues to gradually unfold across various sectors.
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Trade War Impact Deepens as China’s Growth Shocks Global Markets
According to the latest data that was just released by China’s National Bureau of Statistics, the country’s economy has grown faster than the predicted 5.1%, showing a solid 5.4% year-on-year growth in Q1 2025. This growth period essentially precedes the full implementation of Trump’s rather aggressive tariff policy that many analysts have been concerned about.
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Sheng Laiyun, who serves as the deputy commissioner of the National Bureau of Statistics, stated:
“At the moment, the imposition of high tariffs by the US will put certain pressures on our country’s foreign trade and economy.”
The China economy growth figures basically cover the period before US tariffs jumped up to 145%, suggesting that many businesses were rushing to complete transactions and also secure their supply chains before the new levies took effect. Several analysts currently expect this “front-loading” trend to basically reverse in the coming months as the situation develops further.
Beijing’s Response
China has already retaliated with its own 125% levy on American goods and also suspended exports of critical rare earth minerals, which are essential for various high-tech industries. The global market reaction has been fairly swift, with stock volatility increasing worldwide and investors trying to assess the long-term implications.
Sheng Laiyun said:
“The government strongly opposed America’s tariff barriers and trade bullying.”
He additionally added that such actions violated international laws and World Trade Organization principles, with “serious implications for the global economic order.”
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Economic Outlook
Despite the current tensions and uncertainties, China economy growth shows some remarkable resilience right now. Trump’s tariff policy announcement definitely spooked global markets, but China appears somewhat prepared to sustain its economic momentum through various measures.
Sheng indicated that Beijing would likely adopt “a more proactive approach to stimulating growth,” noting that the government has a “robust set of policy tools at its disposal to support the economy.”
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The trade war impact will probably become more apparent in economic data starting in April or thereabouts, as US tariffs begin to really affect production and orders. However, China’s stronger-than-expected performance perhaps suggests the economy may actually be more resilient to external pressures than previously thought by many experts in the field.