Li Chenggang China's new trade envoy

CHINA'S ECONOMY SHOWED surprising strength in early 2025 thanks to consumer subsidies and a rush of export shipments to beat tariffs, although an impasse with Donald Trump over the trade war is darkening its outlook and fueling calls for stimulus.

- BLOOMBERG

China's gross domestic product (GDP) grew 5.4% in the first quarter from a year ago, the government said Wednesday, more than a forecast of 5.2%.

Both production and consumption indicated unexpected momentum in March, before massive US levies on Chinese goods kicked in this month.

The rosy picture will give little comfort to policymakers as economic activities are expected to deteriorate starting from April.

Cargo data last week already showed a slowdown in the volume of goods processed by Chinese ports, foreshadowing a decline in commerce as global companies pause orders and reduce output.

The improvement is "all in the past now," said Michelle Lam, Greater China economist at Societe Generale SA.