Export Push Before US Tariffs Drives China’s Better-Than-Expected 5.4 Per Cent Q1 Growth

China on Wednesday (16 April) said that its economy expanded 5.4 percent in the first quarter, outpacing expectations, as exporters rushed shipments to stay ahead of incoming US tariffs.

Tensions between Beijing and Washington have intensified after President Trump’s global tariff push which has heavily focused on Chinese goods.

US tariffs on Chinese imports have climbed to 145 percent, with Beijing retaliating by imposing up to 125 percent duties on American goods.

The latest data reveals how trade war concerns are hitting China’s shaky rebound, already strained by sluggish consumption and a debt-laden real estate sector.

China's National Bureau of Statistics (NBS) reported a 5.4 percent year-on-year GDP rise in Q1.

"According to preliminary estimates, the gross domestic product in the first quarter... (was) up by 5.4 percent year on year at constant prices," the NBS said.

The figure beat analyst forecasts of 5.1 percent, according to an AFP survey conducted before the data release.

Industrial production also jumped 6.5 percent in Q1, accelerating from 5.7 percent in the final three months of 2024.

Retail sales—a key indicator of domestic consumer demand—rose 4.6 percent compared to the same period last year.

However, Beijing cautioned that global conditions were growing "more complex and severe," urging stronger efforts to spur growth and consumption.

"The foundation for sustained economic recovery and growth is yet to be consolidated," the NBS said.

It added that there was a need for "more proactive and effective macro policies".

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