China's Economy Beats Expectations Amid Tariff Uncertainty

China's economy grew by 5.2% in the second quarter, beating expectations despite US President Donald Trump's tariffs and a property market crisis. The growth was driven by a 6.4% expansion in manufacturing and gains in the services sector. However, retail sales growth slowed in June, and new home prices fell at the fastest monthly pace in eight months. Economists say China remains "highly resilient" but the second half of the year is likely to be more uncertain, and stronger government stimulus may be needed to achieve the 5% annual growth target.

U.S. imports from China fell 16% in June, a smaller decline than May's 34.5% drop, as companies rushed to pre-order inventory ahead of an August tariff deadline. China's overall exports rose 5.8% in June, driven by a surge in orders before the tariff truce expires, and imports grew 1.1%, the first increase this year. Despite the short-term boost, experts warn that high tariffs and uncertainty over trade talks will likely slow export growth and weigh on China's economic growth in the coming quarters.

Asia-Pacific markets mostly rose on Tuesday after China's second-quarter economic growth topped analysts' forecast, with the country's GDP expanding by 5.2%, surpassing the 5.1% growth forecast by economists. Singapore's Straits Times Index hit a fresh all-time high for the seventh straight session, while Indian stocks rose in early trade. However, Chinese property stocks fell as real estate investments continued to slide, and Japan's government bond yields rose ahead of the country's upper house elections. Meanwhile, spot gold continued to rise, and Bitcoin fell after crossing the $120,000 threshold in the previous session.

China's economy grew 5.2% in the second quarter, exceeding expectations, as the country navigated an ongoing trade war with the US. The growth was driven by a surge in exports to non-US markets, such as Southeast Asia, and a pickup in industrial production. However, economists warned that the economy still faces significant headwinds, including a prolonged property crisis, soaring youth unemployment, and persistent deflation. China's exports to the US declined 16.1% in June from a year earlier, but shipments to ASEAN countries surged by over 18%. The country's GDP growth for the first half of the year stood at 5.3%, but economists believe achieving the full-year target of "around 5%" will be challenging without further policy support.

China's economy grew 1.1% in the second quarter, driven by domestic investment in factories and big projects, as well as a surge in exports to countries other than the US. Despite Trump's tariffs, China's economy is expected to expand at an annual rate of 4.1%, slightly slower than the first quarter. The country's manufacturing sector has been boosted by overseas demand, but consumer spending remains weak due to a slowdown in the housing market. China's government has introduced measures to encourage spending, including subsidies for electric cars and other goods, but these efforts have been hindered by a lack of funds. The economy faces challenges, including deflation and a glut of goods, and the government's emphasis on frugality has limited its willingness to stimulate consumption.

China's economy grew 5.2% in the second quarter, beating market forecasts and keeping it on track to meet its 2025 growth target of around 5%. However, analysts warned that weak domestic demand, a wobbly job market, and potential US tariffs could slow growth in the second half of the year. Despite a trade war with the US, China's exports rose 5.9% in the first half, with growth in deliveries to regions other than the US offsetting a contraction in US shipments.