Late on Friday, after Wall Street's closing bell, the US announced a fresh 100% tariff on imports from China plus strict export controls on key US-made software. 😲
The move, following earlier threats of a massive tariff hike by US President Donald Trump, sent shockwaves through US markets. Shares of tech giants like Nvidia, Tesla and Amazon all slipped more than 2% in after-hours trading. 📉
But rather than back down, China has come to the table with confidence and capability. Recent data from China's National Bureau of Statistics show signs of resilience:
- September’s manufacturing PMI ticked up to 49.8, hinting at a pickup in production even if it’s just below the expansion threshold.
- In the first half of 2025, GDP grew by 5.3% year on year, with industrial output up 6.4%—led by equipment and high-tech sectors.
- Retail sales climbed 5.0% to reach 24.55 trillion yuan (about $3.45 trillion), underlining the strength of domestic consumption.
Domestic demand powered 68.8% of GDP growth, with final consumption contributing over half of the gains. 💪
International agencies have taken notice. In July’s World Economic Outlook, the IMF raised its 2025 growth forecast for China to 4.8%, the biggest upgrade among all covered countries and regions. The World Bank echoed this view, also boosting its projection by 0.8 percentage point.
All signs point to a solid upward trend in the fundamentals of the Chinese economy—giving policymakers plenty of confidence as trade tensions heat up. 🔥
Reference(s):
cgtn.com
