China’s economy grew at a 5.4% annual pace in the first quarter of the year, fueled by strong exports in anticipation of escalating tariffs from the U.S. Despite this growth, analysts predict a slowdown in the coming months as tariffs between the two countries reach new highs. Chinese President Xi Jinping has been advocating for free trade during his visits to Asian countries, emphasizing China’s role as a stable trade partner.

In response to the trade war with the U.S., China is diversifying its markets and focusing on trade with other countries. The economy is projected to slow down due to the impact of tariffs, but officials express confidence in China’s economic resilience and long-term growth prospects.

Exports have been a key driver of China’s economic growth, with a 5% expansion in 2024 and a target of 5% for this year. Despite challenges such as weakening property investments and consumer prices, the industrial sector has shown robust activity, especially in advanced technologies like electric vehicles and 3D printing.

The outlook for China’s economy remains uncertain due to the fluctuating nature of the U.S.-China trade war. Economists are cautious about predicting future growth, with forecasts ranging from optimistic estimates by international organizations to more conservative figures by financial institutions like UBS. China’s response includes efforts to stimulate consumer spending and private sector investment to mitigate the impact of tariffs on its exports.