BEIJING: China’s economy grew at a slightly faster pace than expected in the second quarter, showing resilience in the face of US tariffs, though analysts warn of intensifying headwinds that will ramp

China’s Q2 GDP growth met government targets at 5.2% YoY, but the recovery remains uneven beneath the headline numbers. High-tech manufacturing and services are driving growth, while real estate and retail sectors continue to struggle, highlighting structural challenges.

China’s economy beat market forecasts to grow 5.2 per cent in the second quarter, but analysts said headwinds would intensify in late 2025.

Even as China beat expectations to grow 5.2% in the April-June quarter, experts pointed out that retail sales and investment remained lower than expected, but industrial output was surprisingly positive.

U.S. President Donald Trump ratchet up tariffs on Chinese imports to a prohibitive level of 145%, spurring a round of stimulus measures from Beijing.

Chinese banks extended 2.24 trillion yuan ($312 billion) in new loans in June, more than triple May's total, and beating analysts' forecasts, helped by stimulus measures and a trade truce with the United States.