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Business

CGTN: How China’s economy remains vibrant despite U.S. tariff war

PRNW Agency
Last updated: 29/07/2025 1:19 PM
PRNW Agency
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CGTN: How China’s economy remains vibrant despite U.S. tariff war
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CGTN: How China’s economy remains vibrant despite U.S. tariff war

BEIJING, July 28, 2025 /PRNewswire/ — With Chinese Vice Premier He Lifeng to hold economic and trade talks with the United States in Sweden later this month, the strength and resilience of the Chinese economy is in the limelight once again. This round of talks, mutually agreed upon by both nations, is not only a diplomatic engagement but also a testament to China’s enduring economic vitality in a complex international environment.

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Recent statistics underscore the robustness of China’s economy. In the first half of 2025, the GDP grew by an impressive 5.3 percent year on year, surpassing market expectations despite global headwinds. This number reflects more than temporary growth; it exhibits the structural resilience and adaptability of an economy that continues to evolve and upgrade.

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Domestic demand emerged as the cornerstone of growth, contributing 68.8 percent to GDP expansion in this period. Initiatives such as large-scale equipment upgrades and consumer goods trade-in programs have effectively stimulated spending, cushioning China’s economy from external shocks.

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In the first five months of 2025 alone, China’s consumer goods trade-in program generated 1.1 trillion yuan ($153.1 billion) in sales, surpassing the figure for entire 2024. Boosted by the program, China’s retail sales of consumer goods grew 5 percent year on year in the past six months – 0.4 percentage point faster than the growth recorded in the first quarter.

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While external uncertainties have introduced some pressure, China’s trade diversification and the steady output of high-tech manufacturing and service industries have provided strong support to the economy.

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Though China’s trade with some Western countries declined, its trade with Belt and Road partners, ASEAN countries, the European Union, and African nations saw respective increases of 4.7 percent, 9.6 percent, 3.5 percent, and 14.4 percent in the first half of 2025. This expansion of trade relationships has helped China reduce its reliance on any one market, lessening the impact of some Western economies’ protectionist policies.

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China’s resilience reverberates beyond its borders. As a crucial driver of global growth, China’s steady economic performance boosts international market confidence and provides a stabilizing influence amid global uncertainties. Through continued focus on quality growth and opening up, China offers the international community a reliable engine for shared prosperity.

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A recent report from the U.S.-China Business Council indicates that 82 percent of American companies operating in China turned a profit in 2024. Though many cited the uncertainties in China-U.S. relations and tariffs as their main worry, the Chinese market continues to be crucial for them.

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Trade tensions pose obstacles, yet they have not crippled the resilience in the Chinese economy. The upcoming Beijing–Washington talks in Sweden demonstrate China’s willingness to tackle differences via negotiations. While obstacles remain, China’s ability to sustain growth, adapt to changing global landscapes, and engage constructively with international partners signals a future of shared opportunities and mutual advancement.

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https://news.cgtn.com/news/2025-07-25/How-China-s-economy-remains-vibrant-despite-U-S-tariff-war-1FikeNwhlo4/p.html

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Photo – https://mma.prnewswire.com/media/2738478/image_5009787_56433335.jpg

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View original content:https://www.prnewswire.co.uk/news-releases/cgtn-how-chinas-economy-remains-vibrant-despite-us-tariff-war-302515040.html

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