China's Economy Grows 5.4% in Q1 2025 Amid Trade War Threats

China's economy grew by 5.4% year-on-year in the first quarter of 2025, surpassing forecasts and driven by strong exports as businesses rushed to ship goods ahead of new U.S. tariffs. This growth comes amid escalating trade tensions, with the U.S. imposing tariffs as high as 145% on Chinese goods and China retaliating with 125% tariffs on American imports. Despite the positive growth figures, analysts expect a significant slowdown as the impact of the tariffs sets in, affecting trade and production activities. Per capita disposable income also rose by 5.5% in the first quarter, with rural income growth outpacing that of urban areas. Officials emphasized that while current external pressures exist, they believe in the long-term resilience and potential of the Chinese economy. The National Bureau of Statistics acknowledged the complexities of the global economic environment but remains optimistic about future growth prospects.