China's GDP grows 5.4% amid Trump's tariffs war

ISTANBUL

China's gross domestic product (GDP) increased by 5.4% year on year in the first quarter of 2025 amid Trump’s raging tariffs war, Xinhua News reported.

During this period, China's GDP reached 31.8758 trillion yuan (approximately $4.42 trillion), according to data released Wednesday by the National Bureau of Statistics (NBS) of China.

On a quarter-on-quarter basis, the economy grew by 1.2% in the first three months of the year.

China's GDP expanded by 5% year-on-year in 2024, and the nation has set its economic growth target for 2025 at around 5%.

The development came after US President Donald Trump sharply increased tariffs on Chinese goods, up to 245%, prompting Beijing to respond with its own countermeasures. Beijing has imposed 125% tariffs on all US imports.

The NBS deputy director, Sheng Laiyun, said: "US tariff increases on Chinese products will exert some pressure on China's trade and economy in the short term, but won't alter the Chinese economy's long-term positive trajectory."

"A robust toolbox of policy measures ensures our capacity to address external shocks and challenges," Sheng added.

Amid the raging tariff war between the world's two largest economies, China Wednesday appointed Li Chenggang as the new trade negotiator at the Ministry of Commerce.