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Beijing’s economy stabilizes despite escalating trade war
The Chinese economy remains firm in the face of American tariffs, a reality now acknowledged by many analysts and market participants. According to Bloomberg, industrial profits in China rebounded in March 2025, driven by strong performance in the high-tech sector. This is evidence that the country’s economy is withstanding the stress of its trade war with the United States.
In March, profits at industrial firms rose 2.6% year-over-year, following a 0.3% contraction in the first two months of the year. According to China’s National Bureau of Statistics, profits for the first quarter of 2025 increased by 0.8% overall.
This recovery is seen as critical for restoring business confidence and encouraging firms to invest and hire. These are the key steps for Beijing to reach its 5% GDP growth target by year-end.
High-tech manufacturers led the rebound, with profits up 3.5% in the first quarter after falling 5.8% in the prior two-month period. Nearly three-fifths of China’s industrial sectors posted profit growth in March.
Earlier, Beijing declared it was fully prepared to take emergency measures to protect the nation from intensifying external shocks amid its trade battle with Washington. Chinese officials have vowed to introduce new tools to stimulate technology, consumption, and trade, including accelerated low-cost credit support for strategic industries.
Meanwhile, US Treasury data revealed that the government collected $2.26 trillion in tax revenue during the current fiscal year, with over 50% derived from personal income taxes.
Earlier this month, President Trump introduced sweeping tariffs targeting America’s major trade partners. While many were later delayed, tariffs on Chinese goods were raised to 145%, sparking an intensified economic confrontation between the world’s two largest economies.
Published 30 April 2025
© InstaFintech Group
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© InstaFintech Group
