China posts better-than-expected Q2 growth in face of Trump tariffs

China reported better-than-expected economic growth for the second quarter in the face of an ongoing trade war with the United States, as diversification efforts to non-US markets buoyed exports.

Gross domestic product (GDP) expanded 5.2% in the second quarter from the same period a year earlier, according to the National Bureau of Statistics (NBS) at a press conference on Tuesday. That was higher than the average prediction of 5.1%, based on a poll of 40 economists surveyed by Reuters on Friday.

The GDP growth in the second quarter was a slowdown from a 5.4% expansion in the first three months of the year. Together, GDP growth for the first half of the year compared to the same period last year stood at 5.3%, according to the NBS.

Sheng Laiyun, deputy commissioner of the NBS, said the growth in the first half of the year was achieved “under the challenging circumstances of rapidly shifting international dynamics and significantly increased external pressure since the second quarter.”

“We are also keenly aware that the external environment remains complex and volatile, internal structural problems have yet to be fundamentally resolved, and the foundation of economic performance still needs to be further strengthened,” he said.