China’s Q2 GDP hits 5.2% amid weak consumption and trade concerns

China’s economy expanded 5.2% year-on-year in Q2 2025, according to official data, matching expectations despite subdued domestic demand and ongoing global trade tensions. Industrial output rose 6.8%, while retail sales lagged at 4.8%. June exports saw a surge following a temporary truce in the US-China trade dispute. However, investor sentiment remains cautious after President Donald Trump threatened 100% tariffs on Russia’s trade partners, including China, unless the Ukraine conflict ends within 50 days. Economists predict headwinds in the second half due to deflation and a need to stimulate domestic demand.