China's Economic Resilience Amidst Tariff Tensions
China's economy shows resilience despite U.S. tariffs, with Q2 growth exceeding expectations. However, domestic demand remains weak, and analysts expect economic challenges ahead. Policymakers are urged to introduce new stimulus measures to maintain growth amid global trade uncertainties and rising domestic financial pressures.
China's economy has displayed resilience against U.S. tariffs, performing better than expected in the second quarter. Despite surpassing growth expectations, concerns persist over weak domestic demand and an impending slowdown in both exports and consumer confidence.
The annual growth target of around 5% is seen as optimistic amid deflationary pressures and softening demand. China's GDP rose 5.2% year-on-year for Q2, slightly surpassing analyst forecasts but slowing from Q1's 5.4% growth.
Policymakers face mounting pressure to implement stimulus measures as investors eye upcoming economic strategies from the Politburo meeting. Analysts warn of potential further weakening, with fiscal stimulus deemed vital to achieving economic stability.
(With inputs from agencies.)
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