China’s economy has grown more than expected in the first three months of the year, mainly due to stronger retail sales and increased industrial production, a BBC report said. The jump their economy has seen of 5.4% in the first quarter compared to the same period last year is quite significant as it tells a lot about the country, even as trade tensions with US President Donald Trump continue to rise.
After sharing the GDP numbers, the Deputy Commissioner of China’s Statistics Bureau said the government strongly opposes America’s “tariff barriers and trade bullying”, reported BBC. Sheng Laiyun said such actions go against international laws and the rules of the World Trade Organisation, and they seriously affect the global economic system.
Laiyun also said the growth figures show that China’s economy is strong during tough times, but warned that the tariffs imposed by Trump will bring certain pressure to China’s foreign trade and economy. Still, he believes these challenges won’t stop China’s economy from growing in the long run, the BBC report said.
Sheng mentioned that China will take more steps to support growth and said that Beijing has a “rich” set of policies ready to help the economy.
Here are further key developments in the China-US Trade War:
‘Issued over 85000 visas to Indian citizens’, says Chinese Ambassador
The Chinese Embassy in India gave over 85,000 visas to Indian citizens between January 1 and April 9 this year. This is seen as an important move to build closer connections between people in both countries. Chinese Ambassador Xu Feihong shared on social media that more Indian visitors are welcome to China and experience its “open, safe, vibrant, sincere and friendly” atmosphere.
Hong Kong suspends shipping of goods to US
Hong Kong‘s postal service has announced it will stop shipping goods to the United States due to upcoming higher tariffs on products from the region. This decision follows the end of a rule on May 2 that previously allowed items from China worth $800 or less to enter the US without any duties. Hongkong Post stated that it will not collect tariffs for the US, calling the new charges unfair and aggressive, BBC reported.
Nvidia suffers $5.5 billion hit
Chipmaker Nvidia said it expects to face $5.5 billion in costs after the US government made its export rules to China stricter. Nvidia, a key player in the fast-growing AI industry, will now need special licenses to sell its H20 AI chip to China — one of its top markets. These new rules are part of the ongoing trade tensions between the U.S. and China, with both sides placing heavy tariffs on each other’s products. Following the news, Nvidia’s stock dropped nearly 6% in after-hours trading today.
Trump thinks ‘ball is in China’s court’
US President Donald Trump has said that he believes it’s up to China, not the US, to restart trade talks, according to a statement from the White House. Press Secretary Karoline Leavitt said Trump believes China needs the deal more than the US does. This comes after Trump accused China of backing out of a major deal with US aircraft maker Boeing. A Bloomberg report had said that China told its airlines to stop accepting Boeing jets and to pause buying plane parts from American companies.
Trump blames Biden for China trade deal
Trump said that American farmers often end up on the front lines during trade talks or trade wars with countries like China because of how important they are. He mentioned that something similar happened during his first term, when China was tough on US farmers. He said that he had asked them to stay strong, and later secured a trade deal that included $28 billion in payments to farmers, funded through that agreement with China. He called it a successful deal for the US but blamed Joe Biden for not enforcing it properly. According to Trump, China did not fully follow through on the deal after Biden took office.
Chinese official says ‘pressure, threats and blackmail’ not the right way to go
Xia Baolong, a top Chinese official in charge of Hong Kong affairs, strongly criticised the US recently over its high trade tariffs. He said the tariff war was unfair and seemed aimed at hurting Hong Kong’s economy, reported Reuters. Xia, who leads the Hong Kong and Macau Affairs Office, said that the Chinese people, including those in Hong Kong, won’t be bullied. In his speech during Hong Kong’s National Security Education Day, he said, “pressure, threats and blackmail are not the right way to deal with China,” Xia said in a televised speech.”