China’s economy expanded by 5.2% in the second quarter of 2025, according to data released Monday by the National Bureau of Statistics. The result edged past economists’ projections surveyed by Reuters, who had anticipated growth of 5.1%.
Although this shows a slight moderation from the 5.4% expansion recorded in the first quarter, second-quarter growth still surpassed Beijing’s full-year GDP target of 5%.
Looking at consumer activity, growth in retail sales decelerated in June, rising 4.8% year-over-year, down from May’s 6.4% increase. This was also below the 5.4% gain forecast by economists polled by Reuters. On a brighter note, industrial output outperformed expectations, climbing 6.8% compared to the previous year and handily beating the consensus estimate of 5.7%.
The latest set of economic readings comes against a backdrop of intensifying trade tensions with the United States. In April, U.S. President Donald Trump increased tariffs on Chinese goods to an onerous 145%. However, after a high-level meeting between trade negotiators in London last month, the two countries edged closer to an understanding: China has agreed to expedite clearance for exports of rare-earth minerals, while Washington signaled it will ease some curbs on China’s access to advanced U.S. technologies and on students’ visas. Currently, American imports of Chinese goods are subject to 30% duties, while Chinese tariffs on U.S. imports stand at 10%.
With negotiations ongoing, Beijing faces an August 12 deadline to reach a lasting agreement with Washington and secure a more stable trade environment.
Yesterday, China announced exports data that beat expectations in June as businesses continued to rush out shipments to capitalize on a temporary tariff reprieve ahead of an August deadline.
Exports jumped 5.8% in June in U.S. dollar terms from a year earlier, customs data showed Monday, exceeding Reuters’ poll estimates of a 5% jump.
Imports rose 1.1% from a year earlier. While missing economists’ expectations of a 1.3% rise, that marked the first time that imports have grown this year, reversing the trend of declining imports this year amid sluggish domestic demand.
In the first half of this year, Chinese exports jumped 5.9% from a year earlier, while imports slumped 3.9%, customs data showed, with a trade surplus of $585.96 billion — nearly 35% higher from a year earlier.
