China reported a better-than-expected economic growth as the world’s second largest economy took advantage of a trade truce with the US amid President Donald Trump’s tariff offensive.

China’s Q2 GDP growth met government targets at 5.2% YoY, but the recovery remains uneven beneath the headline numbers. High-tech manufacturing and services are driving growth, while real estate and retail sectors continue to struggle, highlighting structural challenges.

China’s economy slowed in the second quarter even as it topped market forecast in a show of resilience against U.S. tariffs, though analysts warn of underlying weakness and rising risks that will ramp up pressure on Beijing to roll out more stimulus.

Looming U.S. tariffs, together with a real estate market slump feeding into weakening consumer confidence, saw China's GDP growth slow in the second quarter.

China's economic growth slowed to 5.2% year-over-year in Q2 2025, its weakest pace since Q3 2024 and down from 5.4% in the preceding two quarters. Despite this deceleration, the Q2 figure slightly exceeded the 5.

China's smartphone market contracted in the second quarter after six straight quarters of growth, with shipments declining at four of the top five brands due to weaker consumer demand, IDC data showed on Tuesday.

China has set an ambitious full-year growth target of around 5%. The National Bureau of Statistics data revealed that the country's GDP grew by 1.1% in the April-June period on a quarterly basis. This was higher than the forecasted 0.9% increase but slightly lower than the previous quarter's 1.2% gain.