China's Economy Expands 5.3 Percent in First Half of 2025

(MENAFN) China’s economy expanded by 5.3% in the first half of 2025 compared to the same timeframe last year, according to data released by the National Bureau of Statistics (NBS). This growth comes amid mounting global headwinds, especially intensifying trade frictions with both the United States and the European Union.

Economic momentum began strongly, with first-quarter GDP rising 5.4%, before slightly tapering to 5.2% in the second quarter. Still, that second-quarter figure slightly exceeded economists’ expectations, with a poll by media forecasting a 5.1% increase.

Looking ahead, the World Bank projects China’s GDP to grow by 4.5% in 2025 and slow further to 4.0% in 2026. Beijing, however, has maintained its official growth target at around 5% for the year. Meanwhile, analysts surveyed by media anticipate the economy to expand by 4.6% this year and 4.2% next year.

Beijing is now racing against an August 12 deadline to finalize a comprehensive tariff agreement with Washington. The deadline follows a temporary truce reached in June that halted several rounds of escalating import tariffs.

Recent negotiations have yielded cautious progress. China has made modest compromises, such as loosening restrictions on rare earth exports. In return, the U.S. has resumed shipments of Nvidia’s AI chips. However, significant sticking points remain—particularly regarding dual-use technologies with potential military applications. If a long-term accord isn’t reached by the deadline, tariffs surpassing 100% could be reimposed, potentially wreaking havoc on global supply chains.

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