China's Economic Surge Defies Expectations Amid Global Challenges

China's economy expanded by 5.4% in Q4, outperforming forecasts and enabling the government to meet its annual growth target. The boost was driven by industrial production and retail sales, despite concerns over U.S. tariffs. Future growth hinges on global economic conditions and potential policy responses.

China's economy recorded an unexpected growth of 5.4% in the fourth quarter, surpassing both analysts' expectations and official forecasts. This impressive growth allows Beijing to comfortably hit its annual growth target and signals that recent stimulus measures are having a positive impact on the economy.

The uptick was largely driven by industrial production, which saw a significant rise in December, attributed partly to the pre-emptive build-up before potential new U.S. tariffs. Retail sales also contributed to the growth, reflecting a normalization of consumer spending. However, the property sector remains a weak spot amidst these positive figures.

China's economic trajectory faces uncertainties, notably U.S. trade policies under the new administration, which could impact future growth prospects. Analysts suggest the economy will have to navigate lingering structural challenges and external pressures to sustain its momentum in the coming years.

(With inputs from agencies.)