China's factory output in April showed surprising resilience in the face of heightened U.S. tariffs, offering a rare bright spot in a month otherwise marked by sluggish consumer spending and a persistent property sector slump, according to data released Monday by the National Bureau of Statistics.
Industrial production rose 6.1% year-on-year, easing from 7.7% in March but outperforming Reuters’ forecast of 5.5%, signaling that government support measures and fiscal stimulus may be partially offsetting trade tensions.
“April’s resilience is in part a result of ‘frontloaded’ fiscal support,” said Tianchen Xu of the Economist Intelligence Unit, who also cautioned that export delivery values were nearly stagnant despite the headline output gain.
The latest figures follow stronger-than-expected exports earlier this month, as Chinese firms re-routed shipments and overseas buyers rushed to secure supplies ahead of further tariff escalation. However, retail sales—a key barometer of domestic demand—rose just 5.1%, missing expectations and slowing from 5.9% in March, reflecting fragile consumer confidence.
Trade Truce Offers Temporary Relief
A surprise U.S.-China agreement last week to pause new tariffs for 90 days provided a glimmer of relief, slowing what had become a spiraling trade war. Still, U.S. tariffs remain elevated, with 30% duties still in place on many Chinese goods.
“China’s foreign trade has overcome difficulties and maintained steady growth,” said Fu Linghui, spokesperson for the NBS, calling the recent detente a positive development for bilateral trade and global recovery.
Despite this, investor sentiment wavered: the CSI300 Index fell 0.4%, while the Shanghai Composite Index slipped 0.1%. The yuan also weakened slightly against the dollar.
Structural Weaknesses Persist
The property sector—long a pillar of Chinese growth—continues to drag. Home prices have stagnated, and investment is shrinking, underscoring the ongoing difficulties in reviving real estate activity.
In the commodities space, daily crude oil processing dropped 4.9% from March, and crude steel output fell 7%, highlighting weakened industrial demand.
Meanwhile, home appliance sales surged 38.8%, bolstered by a government trade-in scheme aimed at stimulating household consumption—one of the few bright spots on the domestic front.
Unemployment edged down slightly to 5.1%, though anecdotal reports suggest factory job cuts are rising in sectors heavily reliant on U.S. exports.
Economic Outlook: Uneven and Uncertain
Economists remain cautious. Goldman Sachs warned that short-term growth momentum, supported by frontloaded stimulus, may not be sustainable without further policy support. “We believe more easing is necessary to stabilize growth, employment, and sentiment,” its analysts said.
China’s GDP grew 5.4% in Q1, beating expectations and keeping Beijing’s “around 5%” target for 2025 within reach. However, with consumer caution deepening and investment lagging, the path forward remains precarious.
“Even if the tariff rollback proves durable,” said Julian Evans-Pritchard of Capital Economics, “wider headwinds mean we still expect China's economy to slow further over the coming quarters.”
As the trade war’s psychological toll dampens consumer outlook, Beijing faces the dual challenge of sustaining industrial strength while rebuilding domestic confidence in a shifting global economic landscape.
Uzbekistan and China have reaffirmed their strategic partnership with fresh momentum, agreeing to fast-track major infrastructure and investment projects including the China–Kyrgyzstan–Uzbekistan railway.
Chinese President Xi Jinping stated that China-Kyrgyzstan relations have reached their strongest point in history. He made the remarks during a meeting with Kyrgyz President Sadyr Japarov on the sidelines of the 2nd China-Central Asia Summit in Astana, Kazakhstan.
Tajikistan's President Emomali Rahmon met with Chinese counterpart Xi Jinping on the sidelines of the 2nd Central Asia–China Summit in Astana. President Rahmon noted that Tajikistan places great importance on its "comprehensive strategic partnership" with China.
New Zealand’s Prime Minister Christopher Luxon is set to visit China this week to strengthen trade ties and attract tourists and students, while also addressing complex security and defence issues.
China and Kazakhstan on Monday (16 June) signed 24 intergovernmental and interdepartmental agreements aimed at expanding cooperation across a broad range of sectors, setting the stage for closer bilateral ties ahead of the 2nd Central Asia–China Summit in Astana.
France will host the 2026 G7 Summit in Evian-les-Bains, the Alpine resort town on Lake Geneva, President Macron announced.
Azerbaijan will host UFC for the first time on June 21 at the Baku Crystal Hall, marking a major milestone for the country's sports scene.
Los Angeles businesses report significant losses as immigration raids prompt many workers and customers to stay home, raising concerns over broader economic effects.
U.S. President Donald Trump on Tuesday dismissed an assessment by his own intelligence chief, Tulsi Gabbard, that Iran is not building a nuclear weapon, saying: “I don’t care what she said. I think they were very close to having one.”
Azerbaijani Press Council members met with Turkish diplomats in Baku to discuss expanding media ties and addressing challenges in bilateral coverage.
Pakistan will begin its first freight train service to Russia from Lahore on June 22. The route is part of the INSTC and aims to connect Pakistan's rail network with Central Asia, establishing a new trade corridor via Iran, Turkmenistan, and Kazakhstan.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
The Israeli military has issued an evacuation advisory for Iranian civilians living near weapons production sites and associated infrastructure within Iran. The message was shared on the social media platform X in both Arabic and Farsi by an official military spokesperson.
Los Angeles businesses report significant losses as immigration raids prompt many workers and customers to stay home, raising concerns over broader economic effects.
Global oil demand will continue rising until around 2030, even as China’s consumption peaks in 2027, driven by low U.S. gasoline prices and slower EV adoption, the International Energy Agency (IEA) said on Tuesday.
Oil prices rose on Tuesday, with analysts saying that uncertainty would keep prices elevated, even as there were no concrete signs of any production losses stemming from the Iran-Israel conflict.
Central banks around the world expect their gold holdings as a proportion of their reserves to increase over the next five years while expecting their dollar reserves to be lower, a survey by the World Gold Council (WGC) showed.
Donald Trump's media company has filed for a Bitcoin and Ethereum exchange-traded fund (ETF), prompting fresh concerns over potential conflicts of interest as the U.S. President remains active in both politics and cryptocurrency ventures.
France will host the 2026 G7 Summit in Evian-les-Bains, the Alpine resort town on Lake Geneva, President Macron announced.
Azerbaijan will host UFC for the first time on June 21 at the Baku Crystal Hall, marking a major milestone for the country's sports scene.
Los Angeles businesses report significant losses as immigration raids prompt many workers and customers to stay home, raising concerns over broader economic effects.
U.S. President Donald Trump on Tuesday dismissed an assessment by his own intelligence chief, Tulsi Gabbard, that Iran is not building a nuclear weapon, saying: “I don’t care what she said. I think they were very close to having one.”
Azerbaijani Press Council members met with Turkish diplomats in Baku to discuss expanding media ties and addressing challenges in bilateral coverage.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment