(PRNewsfoto/CGTN)
Money News PH | BEIJING, July 26, 2025 — As Chinese Vice Premier He Lifeng prepares to meet U.S. officials for high-level trade discussions in Sweden later this month, fresh economic data reveals China’s economy remains strong despite ongoing tariff tensions. The meeting, a mutual diplomatic effort, underscores China’s economic durability and its capacity to thrive amid global uncertainty.
What’s New?
China’s economy posted a notable 5.3% year-on-year growth in the first half of 2025, beating expectations and reinforcing its position as a key player in the global economy. This growth isn’t just a rebound — it reflects structural upgrades and rising domestic demand, which accounted for nearly 69% of the GDP expansion during this period.
Beijing’s push for modernization through initiatives like mass equipment upgrades and nationwide consumer goods trade-in programs has paid off. In just the first five months of 2025, the trade-in program alone generated 1.1 trillion yuan (around $153 billion USD) in sales — already surpassing the total for all of 2024. As a result, retail sales climbed 5% year-over-year in the last six months, slightly faster than the pace seen in Q1.
China Adapts While the World Shifts
While trade with some Western countries has cooled due to protectionist measures, China has been actively diversifying its international partnerships. In the first half of 2025, trade surged with several key regions: up 4.7% with Belt and Road countries, 9.6% with ASEAN, 3.5% with the European Union, and a remarkable 14.4% with African nations.
This strategic shift reduces reliance on any single region and fortifies China’s trade resilience. Meanwhile, high-tech manufacturing and services have remained stable pillars supporting domestic output and job creation.
Foreign businesses haven’t backed away either. A recent U.S.-China Business Council report showed that 82% of American firms operating in China turned a profit in 2024, despite concerns over tariffs and bilateral tensions. For many, the Chinese market remains a cornerstone of their global strategy.
Talks in Sweden: A Step Toward Stability
The upcoming Beijing-Washington economic talks signal a possible reset — or at least a stabilizing point — in the complex China-U.S. relationship. China’s willingness to engage through dialogue suggests a pragmatic approach to resolving disputes, while still confidently pursuing internal economic upgrades.
Even amid trade frictions, China continues to position itself as a dependable force in the global economy — one that not only endures external shocks but adapts and offers mutual growth opportunities for international partners.
Source: PR Newswire
