China's economy has demonstrated unexpected resilience, posting stronger-than-anticipated growth figures despite prolonged trade tensions with the United States under former President Donald Trump's administration.
The latest data reveals that China's GDP expanded by 5.7% in the second quarter of 2025, exceeding analysts' projections of 5.2%. This robust performance comes amid ongoing tariff disputes and export restrictions that have characterised Sino-American trade relations since 2018.
Manufacturing Sector Leads Recovery
Industrial production grew by 6.1% year-on-year, with the manufacturing sector showing particular strength. Experts attribute this to:
- Increased domestic consumption
- Strategic pivots to alternative export markets
- Government stimulus measures
Global Market Implications
The stronger-than-expected figures have buoyed Asian markets, with regional indices climbing following the announcement. Analysts suggest China's performance could:
- Alleviate concerns about global economic slowdown
- Prompt reassessment of emerging market investments
- Influence upcoming trade negotiations
However, some economists caution that structural challenges remain, including property market vulnerabilities and local government debt burdens.
