China has outperformed economic growth expectations for the quarter with its GDP increasing 5.4% from a year earlier.
CGTN’s Li Jianhua breaks down this financial news.
CGTN’s Li Jianhua breaks down this financial news.
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00:00Let's talk to our correspondent Li Jianhua, who's been following the story.
00:03Well, a rare bit of good financial news. What's driving these figures?
00:08Jamie, 5.4% is better than expected by a lot of analysts.
00:13It's slightly higher than the average national target of GDP growth of China is 5%.
00:19Chinese authorities said this morning that it is off to a good and steady start this year.
00:25The main reason, of course, is because of the United States tariffs and exporters are front-loading their shipments to the United States.
00:31So in February, the tariffs on Chinese imports were 10%, so that it shot up to 20% in March.
00:39So for a lot of the exporters, it's now, either now, with 20% or later, higher, which is now about 145%.
00:47And according to the Customs Administration, China's exports in the first quarter rose by nearly 6%.
00:54Of course, there are a lot of other numbers.
00:56Some of the most important ones, apart from the headline figure of GDP, include retail sales.
01:02It's increased by nearly 6% in the first quarter, largely because of the trading policy.
01:07And fixed assets investment also rose by 4.2%.
01:11It's an indicator of businesses' confidence in the economy.
01:14And, of course, the National Bureau of Statistics released a statement saying the external environment is becoming complex and severe,
01:24and they're hoping there will be more proactive macro policies.
01:29If these figures are in part, as you say, to front-loading before Trump's tariffs kick in,
01:35presumably the future looks a little more glum.
01:38You know, that really depends on its hinges on China-U.S. trade talks,
01:44and the United States is still the third-large trading partner of China.
01:48Ever since the trade war started between the two countries in 2018,
01:52the share of China's exports to the United States dropped from 19% in 2018 to 15% to about 15% in 2024.
02:01So, what China has been doing includes, for one thing, diversifying its export markets for another,
02:09that is, tapping to the potential of the domestic market.
02:14So, ASEAN is the largest trading partner of China ever since the trade war started.
02:19Chinese President Xi Jinping is now in Malaysia on a three-nation tour.
02:24And hours ago, they have announced the conclusion of the negotiation of a new free trade agreement
02:30between China and ASEAN countries.
02:32Domestic market-wise, China's e-commerce platforms have pledged to help those traditional exporters
02:38to sell their products online.
02:40JD.com pledged to buy at least 27 billion U.S. dollars worth of products from these exporters.
02:46But the problem is, the domestic amount is still quite weak.