Beijing — China’s economy showed signs of resilience in May, posting steady growth despite escalating tariff pressures from the United States, as domestic consumption continued to strengthen and support recovery efforts.
According to the latest data released by the National Bureau of Statistics (NBS), retail sales — a key measure of consumer activity — rose by 5.2% year-on-year in May, marking a notable rebound after months of sluggish performance. The increase helped offset ongoing challenges in the export sector, which has been strained by additional U.S. tariffs targeting Chinese-made electronics and industrial components.
Industrial production also showed moderate growth of 4.8% compared to the same period last year, while fixed-asset investment remained steady, suggesting that government stimulus measures and infrastructure initiatives are gradually taking effect.
Economists see the uptick in consumption as a critical pillar in China’s broader economic strategy, especially as trade frictions with the U.S. persist. “The resilience of consumer demand offers a cushion against external shocks,” said Zhang Wei, chief economist at China Merchants Bank. “It’s a sign that domestic momentum is picking up even as exports face headwinds.”
Tensions between Beijing and Washington intensified in April after the Biden administration announced a fresh round of tariffs, citing concerns over China’s dominance in key sectors such as electric vehicles and clean energy. China has responded with its own countermeasures, though both sides have left the door open for dialogue.
Despite the pressure, China’s GDP growth for the second quarter is expected to remain within the government’s target range of 5.0% to 5.5%, buoyed by internal demand and targeted policy easing.
Analysts caution, however, that sustained recovery will depend on continued job growth, consumer confidence, and the effectiveness of Beijing’s macroeconomic policies in the face of global uncertainties.
“May’s data is encouraging, but the path ahead remains complex,” said Alicia García-Herrero, chief Asia-Pacific economist at Natixis. “China needs to balance support for consumption with structural reforms if it hopes to maintain stability and growth in the long term.”
As the global trade landscape continues to shift, China’s ability to adapt and stimulate its vast domestic market may prove key to weathering future storms.
source: scmp.com