China's Economic Growth Defies Expectations Amid Trade Tensions

China's economy grew 5.4% in the first quarter, surpassing predictions. Despite this, the U.S.-China trade war clouds future prospects. Economists had anticipated a 5.1% increase compared to last year's growth. Beijing aims for around 5% growth, amidst property slumps and falling domestic demand.

China's economic growth reached 5.4% year-on-year in the first quarter, outpacing forecasts, according to data released on Wednesday. However, the ongoing trade dispute with the United States casts a shadow over China's economic outlook, prompting potential policy changes by Beijing for additional economic stimulus.

Market analysts, who anticipated a growth rate of 5.1%, see Beijing's goal of 'around 5%' growth for the year as ambitious. This target comes amid a persistent property downturn, weakened domestic consumption, and U.S. tariff pressures led by President Donald Trump.

Despite these challenges, Chinese authorities remain confident in their capacity to support growth, promising to lower interest rates and adjust reserve requirement ratios at appropriate times to inject cash into the economy.

(With inputs from agencies.)