\n<\/p>\n
China’s economy has beaten expectations even as US President Donald Trump’s tariffs and a prolonged crisis in the property market weigh on growth.<\/p>\n
Official figures show the world’s second largest economy grew by 5.2% in the three months to the end of June, compared to the same time last year. That’s better than the 5.1% forecast by many economists but lower than the previous quarter.<\/p>\n
The country has so far avoided a sharp downturn, partly due to measures announced by Beijing to help support the economy and a fragile trade truce with Washington.<\/p>\n
The economy “withstood pressure and made steady improvement despite challenges”, said China’s National Bureau of Statistics in a statement.<\/p>\n<\/div>\n
Officials said economic growth was helped by a 6.4% expansion in manufacturing, with higher demand for 3D printing devices, electric vehicles and industrial robots.<\/p>\n
The country’s services sector – which includes areas like transport, finance, and technology – also made gains.<\/p>\n
But in June, retail sales growth slowed to 4.8% from a year earlier, compared with a 6.4% increase in May.<\/p>\n
Also on Tuesday, official figures showed a drop in China’s new home prices in June, falling at the fastest monthly pace in eight months. <\/p>\n
The data suggests the country’s real estate industry is continuing to struggle despite several rounds of measures to support property prices.<\/p>\n
Analysts had expected a bigger impact from tariffs on China’s economy but the country remains “highly resilient”, said economist Gu Qingyang from the National University of Singapore.<\/p>\n
Growth was boosted by exports, mainly due to firms rushing to ship goods before potential new tariffs or changes to China’s export strategy take effect, he added.<\/p>\n
The second half of the year is likely be more uncertain though, Prof Gu said. <\/p>\n
“As a result, stronger government stimulus might be needed. That said, achieving the 5% annual growth target still seems well within reach.”<\/p>\n
But some economists expect China to miss its “around 5%” annual growth target this year.<\/p>\n
“The real question is by how much. We believe it will defend a floor of 4%, which remains the minimum politically acceptable level,” Dan Wang, director for China at consultancy Eurasia Group told the BBC.<\/p>\n
A tariffs war between China’s President Xi Jinping and Trump led to the US imposing a 145% levy on Chinese imports. In return, Beijing introduced a 125% duty on some US goods.<\/p>\n
Those tariffs were paused after negotiations in Geneva and London. The two sides now have until 12 August to reach a long-term trade deal.<\/p>\n
Washington has also hit countries with close economic ties to China with heavy levies.<\/p>\n<\/div>\n