Despite the slowdown, the data points to the dependence of the Chinese economy in the face of Donald Trump’s tariffs.
China’s industrial output and retail sales growth slowed amid trade tensions with the US.
Factory output rose 6.1% year-on-year in April, down from a 7.7% increase in March, data released by China’s National Bureau of Statistics, showed on Monday.
While it was down compared to the previous month, the numbers beat analysts’ expectations.
Analysts voted by Reuters and Bloomberg presses predicted growth of 5.5% and 5.7%, respectively.
Retail sales increased 5.1% year-on-year, slower than the 5.9% growth recorded in March and slower than analysts’ forecasts.
Fixed asset investments, including real estate and infrastructure investments, rose 4%.
The unemployment rate fell slightly from 5.2% to 5.1%.
The latest data could hope that China’s economy will remain resilient in the face of US President Donald Trump’s tariffs.
The National Bureau of Statistics said that despite “an increase in the effects of external shocks,” the economy maintained “new and positive development momentum” due to Beijing’s economic policy.
“However, it must be noted that there are still many unstable and uncertain factors in the external environment, and that the foundation for a sustainable economic recovery needs to be further integrated,” the Statistical Agency said in a statement.
The economic figure was first announced last week as Washington and Beijing agreed to dramatically reduce tariffs on each other’s goods for 90 days.
Under the deal reached in Geneva, the US reduced tariffs on Chinese goods from 145% to 30%, while China reduced its rate from 125% to 10%.
“The risk is that tariffs will be around for a long time and ultimately production will be offshore,” Lynn Song, ING’s Greater Economist, said in a memo on Monday.
“However, amidst the impossibility of tariffs not only in China but around the world, few companies are in a hurry to put their resources into setting up offshore manufacturing facilities. This means that a decent portion of China’s manufacturing and exports is less affected than initially feared.”