China's Surprising Economic Growth Amidst US Trade Tensions

China's economy grew 5.4% in the first quarter, surpassing expectations. Despite the growth, escalating trade tensions with the US are causing concerns about future prospects. Analysts highlight the mixed signals from various sectors, noting strong manufacturing but challenges in retail and property sectors.

China's economy defied expectations with a 5.4% growth in the first quarter, surpassing the anticipated 5.1%, as reported on Wednesday. Despite this surprise growth, a looming trade war with the United States clouds future forecasts.

US President Donald Trump's increased tariffs on Chinese goods have prompted Beijing to retaliate with its own duties, escalating concerns of a potential global economic slowdown. Analysts observed mixed signals from different sectors, with robust manufacturing contrasted by challenges in retail and property.

Market reactions were muted, with index movements remaining steady. Analysts caution that while current data seems promising, the long-term impact of trade tensions remains uncertain, putting pressure on China's policymakers to consider additional stimulus measures.

(With inputs from agencies.)