How China’s economy stays going despite the US Customs War

Since the Chinese Vice Prime Minister He Lifeng will have economic and trade talks with the United States in Sweden at the end of this month, the strength and resilience of the Chinese economy are again in the spotlight. This round of talks agreed by both countries is not only a diplomatic commitment, but also proof of China’s persistent economic vitality in a complex international environment.

The latest statistics underline the robustness of China’s economy. In the first half of 2025, GDP grew by impressive 5.3 percent compared to the previous year and thus exceeded the market expectations despite global headwinds. This number not only reflects temporary growth, but also testifies to the structural resilience and adaptability of an economy that is continuously evolving and improves.

Inland demand developed into a cornerstone of growth and contributed 68.8 percent to GDP growth during this period. Initiatives such as large -scale modernizations of facilities and buyback programs for consumer goods have effectively stimulated the expenses and protected the Chinese economy from external shocks.

In the first five months of 2025 alone, China’s program achieved sales of 1.1 trillion yuan ($ 153.1 billion) to exchange consumer goods and thus overrent the value of the entire year 2024. Thanks to this program, retail sales in China rose by 5 percent compared to the previous year – that is 0.4 percentage more than in the first quarter.

While external uncertainties have exerted certain pressure, China’s trade diversification and the stable production of the high-tech manufacturing and service industries have strongly supported the economy.

Although China’s trade was declining with some western countries, the country recorded an increase in trade with the partners of the Belt and Road Initiative, the Asean countries, the European Union and African countries by 4.7 percent, 9.6 percent, 3.5 percent and 14.4 percent. This expansion of trade relationships helped China to reduce its dependence on individual markets and thus weaken the effects of the protectionist policy of some western economies.

China’s resistance shines beyond his limits. As an important engine of global growth, China strengthens stable economic output and has a stabilizing effect on international markets and has a stabilizing way in the face of global uncertainties. Due to the continued concentration on qualitative growth and opening, China offers the international community a reliable engine for common prosperity.

A current report by the US China Business Council shows that 82 percent of the American companies active in China made profits in 2024. Although many mentioned the uncertainties in the relationships between China and the USA as well as tariffs as their greatest concern, the Chinese market remains of crucial importance for them.

Trade tensions represent obstacles, but have not affected the resilience of the Chinese economy. The upcoming talks between Beijing and Washington in Sweden show China’s willingness to help differences through negotiations. Although there is still obstacles, China’s ability to maintain its growth, adapt to changing global framework and work constructively with international partners gives hope for a future full of common opportunities and mutual progress.

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

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

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