China’s economy mostly remained resilient in the face of US tariffs

June 03, 2025

China’s economy mostly remained resilient in the face of US tariffs in April 

This China Economy Watch provides a comprehensive analysis of where the Chinese economy stood in the face of China-US tariff war in April and aims to help members with interests in China better comprehend the Chinese macro-economy and inform their business planning.

Trusted Insights for What’s Ahead^®

• Status of China’s Economy: In April, China’s key economic indicators remained resilient despite higher US tariffs
  The “temporary” de-escalation of China-US tariffs, coupled with the implementation of some supportive monetary policies earlier this month (including interest rate cuts), suggests that short-term economic pressure may be easing. However, the economy continues to face headwinds from weak domestic demand, the ongoing property downturn, and unpredictable US trade policy. 
• Investment Trends: Manufacturing investment remains robust; property investment continues to contract
  Fixed asset investment (FAI) grew 4.0% y-o-y in the January-to-April period (Jan-Apr), down from 4.2% in Q1. Manufacturing investment remains robust (8.8% in Jan-Apr vs. 9.1% in Q1), and infrastructure investment remains solid (5.8% in Jan-Apr and Q1). Conversely, property investment continues to contract (-10.3% in Jan-Apr vs. -9.9% in Q1). Looking ahead, the expected acceleration in government bond issuance in the coming months should continue to support infrastructure and manufacturing investment.

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