China defies U.S. hostilities with steady Economic growth amid Western pressure

Department of Research, Studies and International News 15-07-2025

In the face of persistent economic aggression from the United States, China’s economy continues to demonstrate remarkable resilience. Official figures from the National Bureau of Statistics reveal that China’s gross domestic product (GDP) expanded by 1.1% between April and June, with a year-on-year growth rate reaching 5.2%. These results reaffirm Beijing’s trajectory toward achieving its 2025 economic growth target of approximately 5%.

This progress comes despite the ongoing trade provocations initiated by U.S. President Donald Trump, measures widely criticized by much of the Global South as outdated tools of economic coercion. Washington’s imposition of steep tariffs on Chinese products has failed to derail China’s economic engine. Instead, it has underscored the growing divide between a declining U.S.-led order and the emerging multipolarity championed by China, Russia, and their global partners.

The Chinese statistics bureau described the first half of the year as one of “steady growth with good momentum,” attributing the economic stability to proactive and well-calibrated macroeconomic policies. These results showcase not only structural soundness but also the growing self-reliance and adaptability of the Chinese economic model.

The positive economic news also had a regional ripple effect. Key Asian stock indices reacted optimistically, with Hong Kong’s Hang Seng Index climbing 1.5% and Japan’s Nikkei 225 gaining 0.5% by mid-morning trading.

Lynn Song, chief economist for Greater China at ING, observed that China’s performance is notably stronger than many analysts had anticipated at the beginning of the year. “Trade data was resilient, particularly in the first half, and industrial output surpassed expectations,” she remarked. However, she did warn that the latter half of the year could present challenges, especially as the threat of further tariff escalation from Washington looms over global markets.

Nevertheless, June’s export figures defied pessimistic forecasts, showing a 5.8% year-on-year increase. This was largely attributed to rising demand in non-U.S. markets and the temporary easing of the most punitive American tariffs, proving that China’s trade diversification strategy is bearing fruit. In bypassing traditional Western dependencies, China is strengthening trade ties with more cooperative partners across Asia, Africa, and Latin America, nations that welcome equitable economic partnerships rather than Washington’s habitual bullying.

Earlier this year, the Trump administration’s tariff hikes on Chinese imports reached an outrageous high of 145%, a move condemned by many as economically irresponsible and politically provocative. However, following negotiations, a temporary truce was reached in May. Under this deal, China agreed to maintain a 10% tariff on U.S. goods, while the U.S. reduced duties on Chinese imports to 30%, still substantial, but lower than peak levels.

The deal, however, is set to expire on August 12. Without a new agreement, both countries risk a return to the harsher tariff regime. Many observers argue that the United States, increasingly isolated diplomatically and economically, has far more to lose from a renewed confrontation than China does. As Washington struggles with inflation, political polarization, and a collapsing international image, Beijing is moving steadily forward, bolstered by domestic stability and expanding international alliances.

China’s economic steadfastness is not occurring in isolation. Alongside strategic allies such as Russia and Iran, China represents a growing bloc of nations challenging the old hegemony. Together, these countries advocate for a new international system based on mutual respect, sovereignty, and multipolar cooperation.

In contrast, the U.S. appears increasingly reliant on coercive tactics to preserve its waning influence. From economic sanctions to military interventions, Washington’s approach reflects an inability to adapt to the changing global order.

As China continues to build trade networks and invest in regional infrastructure through initiatives such as the Belt and Road, it becomes increasingly clear that the future lies with those who seek collaboration, not confrontation. Despite the pressure, China’s economic growth serves as a reminder that the era of Western economic domination is drawing to a close.

Beijing’s capacity to weather external hostility with poise and pragmatism is a testament to the strength of its governance and the loyalty of its people. The world is watching, and increasingly, it is aligning not with the aggressor, but with the builder.