China's Economic Resurgence Amidst Trade Challenges

China's economy concluded 2024 stronger than anticipated, aided by stimulus efforts despite looming trade tensions with the U.S. and weak domestic demand. The growth rate hit 5.0% meeting government targets, though rising U.S. tariffs may necessitate further domestic economic stimulus in 2025.

China's economy wrapped up 2024 on a more robust note than analysts predicted, thanks to a series of stimulus initiatives, though potential new trade conflicts with the United States and subdued domestic demand pose risks to a broader recovery this year.

President-elect Donald Trump's plans to impose steep tariffs on Chinese goods could impact exports, a key area of growth. The world's second-largest economy achieved a 5.0% expansion in 2024, aligning with governmental projections, as indicated by National Bureau of Statistics data on Friday, though analysts had predicted 4.9% growth. GDP growth in the fourth quarter outperformed expectations, marking the fastest increase since mid-2023.

Amid export pressure anticipated in 2025 due to U.S. import limitations, there's a heightened need for domestic stimuli. Despite strong exports elevating the trade surplus to record levels, the yuan faces depreciation threats amid a dominant dollar and looming trade barriers. Further policy measures are expected as economic sentiments sail into uncertain waters.

(With inputs from agencies.)