China’s economy grew by 5.2% in the three months to June, beating expectations of 5.1%. The country’s manufacturing sector expanded by 6.4%, driven by demand for 3D printing devices, electric vehicles, and industrial robots.
The services sector also made gains, but retail sales growth slowed to 4.8% in June from a year earlier. New home prices fell at the fastest monthly pace in eight months, indicating the real estate industry is struggling despite government support.
Analysts expected tariffs to have a bigger impact on China’s economy, but it remains “highly resilient.” Exports were boosted by firms rushing to ship goods before potential new tariffs or changes take effect. However, some economists predict China may miss its annual growth target of around 5%.
The US and China are currently in a trade standoff, with Washington imposing levies on Chinese imports and Beijing responding with duties on US goods. The two sides have until August 12 to reach a long-term trade deal.
Despite the uncertainty, China’s National Bureau of Statistics said the economy has “withstood pressure” and made steady improvement despite challenges. Officials noted that stronger government stimulus might be needed in the second half of the year to achieve the growth target.
Source: https://www.bbc.com/news/articles/c20r461g61xo