China's economy grew more than expected in the first quarter of 2025, helped by a rise in retail shopping and factory production. But there are still concerns about the future, mainly because of growing trade tensions with the United States. China has warned that the latest increase in U.S. tariffs could have serious consequences.
The National Bureau of Statistics reported that China’s economy grew by 5.4% between January and March compared to the same time last year. This beat the 5.1% growth that experts had predicted and matched the growth seen in the last quarter of 2024.
The stronger performance came from increased consumer spending and higher factory output. Retail sales in March were up by 5.9% compared to the previous year, improving from 4% growth in January and February. Factory production also rose by 7.7% in March, up from 5.9% earlier in the year.
Still, not everything is going well. The property sector continues to struggle, dragging down the overall economy. Real estate investment fell by nearly 10% in the first three months of the year, and home prices didn’t rise in March, showing that buyers are still being cautious.
Chinese leaders have promised to introduce more support to keep the economy growing, especially as they face what they’re calling major challenges from outside the country.
Economist Xu Tianchen called the first quarter “a very good start” but said the government would need to respond quickly and strongly to deal with the possible damage from U.S. tariffs.
