The statistics agency says that the economy ‘begins’ despite the most’ complex and severe external environment.
China’s economy grew 5.4 percent in the quarter of January-March, according to the country’s statistics agency, a more anticipated performance that occurs when exporters are preparing for the consequences of the punishment rates of the president of the United States, Donald Trump.
Industrial production increased 6.5 percent, the highest gain between the individual sectors, while the service sector extended 5.3 percent, the China National Statistics Office said Wednesday.
Retail sales and agricultural production grew 4.6 percent and 4.0 percent, respectively.
“The national economy had a good start and high quality development advanced with a new and positive impulse,” said the statistics agency.
However, China’s economy faces a more “complex and severe” external environment and the “basis for economic recovery and sustained growth has not yet been consolidated,” said the statistics agency.
The economic figures occur when the United States and China, the two largest economies in the world, are locked in a growing commercial war that threatens to shake the foundations of the global economy.
“They are very positive according to exports mainly, so I expect the second quarter to be much worse,” said Alicia García-Herrero, chief economist of Asia Pacific in Natixis in Hong Kong, Al Jazeera.
Trump has reached China with a 145 percent rate while opening the additional commercial restrictions in some of its greatest exports, including critical semiconductors and minerals.
China has retaliation with a 125 percent tax on US goods, committing to “fight until the end” if Washington continues to increase its commercial salvings.
Lynn Song, chief economist of Greater China in ING, said in a note that Beijing will probably implement a more monetary and fiscal stimulus to fulfill its 2025 growth objective of approximately 5 percent.
“The economy has had a very necessary beginning in 2025, since the growth of the second quarter will probably receive successes of the strong escalation of President Trump’s commercial war,” Song said.