The Chinese economy grew by 5.4 percent in the first quarter, exceeding many analysts' expectations. This is reported by the news agency Reuters. Growth in Chinese industry in particular has contributed to the progress.
However, the data for China's gross domestic product (GDP) comes at a time when the country is preparing for the consequences of a tariff war with the United States. It was not seriously initiated until April, which means the beginning of the second quarter. The tariff war could potentially hamper China's growth in 2025. This is the assessment of Allan Sørensen, chief economist at the Confederation of Danish Industry (DI).
- It is precisely the industry that is set to be hit by the high American tariffs when products are to be sold to the United States, he writes in a comment.
Two weeks ago, US President Donald Trump announced increased tariffs on Chinese goods, among other things. Tariffs are import taxes placed on goods produced abroad. The idea is that goods entering one's country become more expensive and that people are less likely to buy them. Since then, the two parties have alternately increased tariffs on each other's goods.
Trump's argument for higher tariffs is that, according to him, the United States has a trade deficit with many countries, including China. This needs to be corrected, he believes. The intention is that Americans will instead buy domestic products and thus strengthen the country's own economy.
At first, the US tariff on goods from China was 34 percent. It has since been raised several times and now stands at 145 percent. China has imposed a tariff of 125 percent on goods from the United States.
- China has set a growth target of five percent. - but it will be extremely difficult to achieve this year, Allan Sørensen assesses and elaborates:
- If the trade war with the US continues, China's economy will slow down more during the year. China will hardly achieve growth of much more than four percent. in 2025.
jel /ritzau/
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
