# China’s economy grew by 5.4-percent in the first three months of this year, higher than the expectations of economists who had predicted an expansion of 5.1-percent. This comes as China is currently dealing with the fallout of an escalating trade war with the US. Exports from China to America now face 144-percent levies, compared to 125-percent for US goods entering China. Morgan Stanley economists say China’s economic growth is likely to deteriorate rapidly from the second quarter, given the low possibility of bilateral negotiations to establish an offramp for the tariff hikes.
China’s economy grew by 5.4% in the first quarter of 2025