The latest snapshot of the economy offers the fullest glimpse yet into how China coped with the turmoil unleashed by Trump’s trade war. A tariff truce reached by Beijing and Washington in mid-May gave temporary relief to exports from China that would have faced duties of as much as 145% from the US.
China’s retail sales growth unexpectedly accelerated as the economy rode out the tariff rollercoaster in May, offering a confidence boost to Beijing as it stares down the threat of a prolonged trade war with the US.
Retail sales grew 6.4% last month, the fastest pace since December 2023 and exceeding all estimates, according to official data released Monday. That helped offset a mild slowdown in industrial output, which climbed 5.8% and less than the previous month as Donald Trump’s tariffs hurt demand from the world’s largest economy.
