Photo: Qu Yiwei/Xinhua/AFP
Eurasia
16/04/2025 17:54
With the trade war casting a shadow over the outlook, analysts predict that the world’s second-largest economy will slow significantly in the coming months, as tariffs of up to 145 per cent on US imports from China come into force. In response, Beijing has imposed retaliatory tariffs of 125 per cent on American exports, while also reaffirming its commitment to keeping Chinese markets open to trade and investment.
Chinese leader Xi Jinping is visiting several Asian countries this week, advocating for free trade and presenting China as a source of “stability and certainty” in turbulent times. Xi is touring Vietnam, Malaysia, and Cambodia, while the US has announced that senior State Department official Sean O’Neill will travel to Hanoi and Ho Chi Minh City in Vietnam, to Siem Reap in Cambodia, and to Tokyo.
According to AP, exports contributed significantly to China’s 5 per cent annual economic growth in 2024, and this year’s official growth target remains around that figure.
In the short term, the new tariffs will place additional pressure on China’s economy, but they are unlikely to derail long-term growth, said Sheng Laiyun, spokesperson for the National Bureau of Statistics. He noted that China’s exports to the United States now account for less than 15 per cent of total exports, down from more than 19 per cent five years ago.
Chinese exports surged by over 12 per cent year-on-year in March, and by nearly 6 per cent in US dollar terms in the first quarter, as companies rushed to ship goods ahead of Trump’s tariff hikes. This surge has supported robust manufacturing activity in recent months.
Industrial production rose by 6.5 per cent year-on-year in the first quarter, led by a nearly 11 per cent increase in equipment manufacturing output.
The fastest growth was observed in advanced technologies, including the production of battery electric and hybrid vehicles, which jumped 45.4 per cent year-on-year. Output of 3D printers rose by almost 45 per cent, while industrial robot production increased by 26 per cent.
