China's economy copes with trade tensions

China's economic slowdown was less than expected in the second quarter of 2025, a sign of resilience to US tariffs, but analysts say weak domestic demand and difficulties facing global trade will increase pressure on Beijing for more stimulus measures, according to Reuters.

China's GDP grew by 5.2% in the April-June period 2025, at an annual rate, a slowdown from the 5.4% advance in the first quarter, official data showed yesterday. Analysts had expected economic expansion of 5.1%.

"China grew above its official 5% target in the second quarter of 2025, partly due to the development of exports,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding: "The growth of more than 5% in the first and second quarters allows the government to tolerate some slowdown in the second half of the year.”

Compared with the first quarter, when it registered an advance of 1.2%, China's GDP grew by 1.1% in the period April-June 2025, data from the National Bureau of Statistics show. The dynamics are above analysts' estimates, which indicated an advance of 0.9%.

Investors expect Beijing to announce new stimulus measures this month, which should improve the economy's development in the second half of the year. So far, infrastructure spending has been increased and consumption has been stimulated, along with monetary policy easing, to mitigate the effects of US tariffs.

The latest Reuters poll predicts a slowdown in China's economy to 4.5% and 4% in the third and fourth quarters, amid the difficulties facing global trade.

For the whole of 2025, China's GDP growth is expected to increase by 4.6% - below the official target and below the 5% level in 2024, and to reach 4.2% in 2026, according to the survey.

• Xi Jinping: "China and Russia must strengthen their mutual support"

Chinese leader Xi Jinping told Russian Foreign Minister Sergei Lavrov, who was in Beijing, yesterday that Russia and China must "strengthen their mutual support", according to Chinese state media, news.ro reports.

Beijing and Moscow must "implement the important consensus” reached with Russian President Vladimir Putin and "strengthen mutual support in multilateral forums,” Xi Jinping said, according to the official Xinhua news agency. The two countries should also "unite countries in the global South and promote the development of the international order in a more just and reasonable direction,” the Chinese leader said.

The remarks came as Sergei Lavrov attended a meeting of foreign ministers of the Shanghai Cooperation Organization (SCO). The SCO brings together ten countries, including China, Russia, Iran, India and Pakistan. The SCO aims to counterbalance Western organizations and strengthen cooperation in politics, security and trade.

Lavrov and Xi Jinping also discussed preparations for a visit by Russian President Vladimir Putin to China on the sidelines of the SCO summit in early September, Moscow said.

Sergei Lavrov met with his Chinese counterpart Wang Yi on Sunday, discussing in particular the Ukrainian issue and "relations with the United States,” according to Moscow.