China’s Economy Beats Expectations, Grows By 5.4% In The 1st Qtr; Trade War Creates Worries

China’s economy is showing strong performance, even as the trade war with America heats up. In the first quarter of this year, from January to March, China’s GDP grew by 5.4 per cent. This growth is more than what economists had expected. The expected growth was around 5.2 per cent.

This data was shared by the National Bureau of Statistics (NBS). It shows that despite global challenges, China’s economy is still strong, mainly because of better domestic demand.

Trade War With America Intensifies

While the economy has shown strong numbers so far, there are growing concerns about what’s ahead. The trade war between the United States and China has become very serious. Recently, the U.S. raised tariffs on Chinese goods to 145 per cent. In response, China also raised tariffs on American products, but only up to 125 per cent.

These high tariffs could hurt trade between the two countries, especially exports.

Economists Raise Red Flags

Experts are worried that the strong economic growth may not continue in the next few months. Since these growth numbers are from before April, they do not reflect the full impact of the new tariffs.

Economists say that exports have always been a big driver of China’s growth. If exports fall due to the trade war, it could slow down the economy in the next quarter.

However, analysts at Société Générale believe that strong domestic demand is helping China for now. They say that even though there was a slight slowdown before the tariff increase, the economy is still on a solid path.

However, the coming months will be very important for China’s economy. If the trade war continues, it may create more pressure. But if domestic demand stays strong, China might still manage steady growth.

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