China boosts retail sales to counter US trade pressure

China's retail sales growth quickened in January-February in a welcome sign for policymakers' efforts to boost domestic consumption even as joblessness rose and factory output eased, underscoring the strains on an economy facing fresh US trade pressure.

- 

Policymakers have put expanding domestic demand as the top priority this year as they try to cushion the impact of the Trump administration’s tariffs on its crucial export engine.

China's top leaders have maintained an economic growth target of “around 5 percent” for 2025, but analysts say that may be a tall order given pressure on exports, tepid household demand and a protracted property crisis.

The data followed weaker-than-expected exports and inflation indicators earlier this month, highlighting the need for more policy support to foster a sustainable economic recovery.

"The risk to the economy is the damage from higher US tariffs on China’s exports which will likely show up in the trade data over the next few months," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.