China's Retail Surge Amid Economic Strains

China's retail sales saw growth in early 2025, despite rising U.S. tariffs and economic pressures. The surge was driven by holiday spending, yet challenges like high unemployment and a slump in property investment persist. Policymakers aim to increase domestic demand while maintaining caution on monetary policies.

China's retail sales have shown a promising increase in the January-February period, reflecting efforts by policymakers to ignite domestic consumption. This comes as the country's economy grapples with U.S. tariffs, rising joblessness, and easing factory output.

Despite these positive retail figures, economic analysts warn of challenges ahead due to potential repercussions of heightened U.S. tariffs, slow export growth, and weak household demand. The Chinese government remains vigilant with plans for fiscal and monetary support prioritizing domestic demand growth.

Additional measures, like subsidies for home appliances and increasing household income, are underway. However, concerns about employment and property markets remain, as seen in rising unemployment and declining property investment, which underscore the dilemma policymakers face amid global trade tensions.

(With inputs from agencies.)