The second largest economy in the world has grown more than expected in the first quarter. But the trade dispute with US President Donald Trump could soon become noticeable in the numbers.
China's economy increased somewhat more than expected in the first quarter of this year. As the statistics office in Beijing announced, the provisional growth was 5.4 percent compared to the same period last year.
Sheng Laiyun, Vice Commission of the National Statistics Authority, spoke of a good start and a stronger demand. Analysts had expected around 5.2 percent growth in advance.
Growth destination despite the customs dispute
Beijing has again set an ambitious growth goal of around five percent for 2025 – despite the trade conflict with the USA escalated in April.
“We decidedly reject trading protectionism,” said Sheng. “It is a self -destructive approach that disturbs the global economy.” The tariffs would have short -term effects, but will not change the long -term positive trend in China's development.
He added that the authorities were willing to take “diverse measures” to ensure price stability and to promote employment.
Hong Kong stops shipping to the USA
Against the background of the trade conflict, Hong Kong, meanwhile, exposed the shipping of goods to the USA. As the mail of the Chinese special administrative zone announced, it “will definitely not raise tariffs on behalf of the United States and the acceptance of postal shipments with goods intended for the United States”.
This is a reaction to the “violent” customs increases by US President Donald Trump. With immediate effect, no land post programs with the destination USA would be accepted, added the post office. From April 27, this regulation also applies to air postings. Other post programs that only contain documents without goods are not affected.
China wants to expand the circle of trading partners
The world trade organization (WTO) warns that the customs war could break down the goods traffic between the United States and China by up to 80 percent. Effects are also likely to be felt in Europe. The USA and China are the most important trading partners in Germany.
The Chinese Ministry of Foreign Affairs announced yesterday that China would like to expand the circle of its trading partners and lure more investments to China.
Weak demand brakes economy
Nevertheless, observers expect that economic growth will weaken from the second quarter. So far, China's government has been trying to boost consumption with an exchange program age against new devices or cars.
The People's Republic has long been fighting with weak demand, pressure from deflation and a waving real estate crisis that brakes the economic engine.
