China’s economy grew faster than expected in the second quarter of 2025, defying pressure from lingering U.S. tariffs and global trade tensions. Gross Domestic Product (GDP) expanded by 5.2% year-on-year, signaling resilience in the face of ongoing economic challenges stemming from the Trump-era trade policies.
The stronger-than-forecast performance was driven by robust domestic consumption, steady industrial output, and a surge in infrastructure investment. Exports also showed signs of recovery, buoyed by demand from emerging markets and targeted policy support from Beijing.
Analysts note that while U.S. tariffs continue to affect certain sectors—particularly technology and manufacturing—China’s efforts to diversify trade partners and accelerate homegrown innovation have helped offset the impact. Consumer spending and green energy investment were among the standout contributors to Q2 growth.
The upbeat data bolsters Beijing’s position as it pursues long-term economic stability while preparing for future geopolitical and market uncertainties. It also adds pressure on global policymakers to recalibrate expectations amid shifting dynamics in global trade and supply chains.
