China’s economy grows at a steady pace despite Trump’s trade war 🇨🇳📈

China’s Q2 2025 GDP rose 5.2% year-on-year, slightly exceeding expectations, while first‑half growth reached 5.3%—keeping it on track to hit its ~5% annual target. Despite ongoing U.S. tariffs, exports climbed approximately 5.8%–5.9% in June, with China pivoting shipments toward markets in Southeast Asia, Europe, Africa, and Latin America.

This strength reflects strategic front-loading by exporters, selective tariff reprieves in May, and a diversified global trade approach (Deutsche Welle). Boosts in high-tech manufacturing—like robotics, EVs, and AI hardware—also supported industrial output growth (~6.8% in June).

However, domestic demand remains weak: retail sales rose ~4.8%, real estate investment falls persist, and deflationary pressures continue (barrons.com). Many households face wage cuts and side hustles as local job markets soften.

Bottom line: China’s economy is holding steady thanks to robust exports, targeted fiscal stimulus, and continued investment in advanced manufacturing. But unless domestic consumption and the housing sector recover, structural imbalances could challenge growth later in the year.