China's Economic Prospects in the Face of U.S. Trade Tensions

China's economy grew by 5.0% in 2024, surpassing expectations with the help of various stimulus measures. However, weak domestic demand and potential trade tension with the U.S. pose challenges. Analysts caution that achieving consistent growth will require domestic demand stimulation and more fiscal policies.

China's economy exceeded expectations in 2024, recording a 5.0% growth rate, achieving the government's target through extensive stimulus initiatives. Despite these gains, concerns remain as domestic demand continues to lag, and the specter of renewed U.S. trade tariffs looms large.

The fourth quarter saw significant acceleration with a 5.4% year-on-year growth, the fastest pace since the second quarter of 2023. Yet, analysts emphasize that this growth, driven by net export momentum, masks underlying economic challenges, including a sluggish property sector and underwhelming retail sales and industrial output.

Looking ahead, experts highlight that China's growth in 2025 hinges on pivotal policy decisions expected in March. Economic strategists argue for deeper interest rate cuts and robust fiscal policy to maintain momentum amid geopolitical uncertainties and evolving U.S. trade policies.

(With inputs from agencies.)