By Shahrokh Saei

Jan-May trade surge fuels China’s 5% growth target, exposes futility of US pressure tactics

June 9, 2025 - 14:8

BEIJING- China's latest trade data, revealing a 2.5% year-on-year increase in total goods imports and exports (reaching 17.94 trillion yuan, or $2.5 trillion) for January-May 2025, stands as a powerful testament to the nation's economic resilience. 

This sustained growth, achieved amidst persistent external challenges, directly fuels confidence in achieving Premier Li Qiang's ambitious "around 5 percent" economic growth target for 2025, while simultaneously exposing the fundamental ineffectiveness of the US trade war strategy.

Resilience in the face of adversity

Despite facing significant headwinds in the global environment, China's trade engine demonstrated remarkable robustness:

- Strong export momentum: Exports surged 7.2% to 10.67 trillion yuan, far outpacing overall trade growth.

- Structural strength: Exports of high-value mechanical and electrical products jumped 9.3%, accounting for a dominant 60% of total exports. This shift towards sophisticated manufacturing underpins self-reliance.

- Diversification success: Trade with ASEAN (up 9.1%), the EU (up 2.9%), and Belt and Road partners (up 4.2%) continues to flourish, showcasing China's ability to cultivate deep and growing economic partnerships globally.

- Post-dialogue acceleration: Customs Spokesperson Lü Daliang explicitly noted that trade momentum "particularly accelerating notably" after the recent high-level China-US economic talks. His comments suggest responsiveness to engagement.

The futility of US trade war tactics

The data delivers a stark verdict on the US strategy of attempting to contain China through tariffs and economic pressure:

- Targeted failure: While China-US trade decreased by 8.1%, this decline was more than offset by robust growth with other major partners. China's overall trade growth continued despite US pressure.

- Self-reliance in action: The significant rise in exports of high-value machinery and electronics underscores China's capacity to innovate, manufacture, and compete globally in critical sectors. Tariffs haven't crippled China's industrial base; they've spurred its evolution.

- Market diversification: The thriving trade with ASEAN, BRI nations, and the EU demonstrates China's successful pivot away from over-reliance on the US market. The world offers vast opportunities, and China is effectively accessing them.

- Resilience over fragility: Persistent US pressure, rather than triggering collapse, has revealed the depth and adaptability of the Chinese economy. The system has absorbed the shocks and continued to grow, proving its fundamental strength.

Fueling the 5% growth ambition

This sustained trade performance is a critical pillar supporting the 2025 growth target:

- Export engine: Strong export growth provides vital external demand and manufacturing activity, directly contributing to GDP expansion.

- Stability signal: Maintaining trade growth amidst volatility signals underlying economic stability, boosting domestic and international confidence – crucial for investment and consumption.

- Policy validation: The data validates the effectiveness of government policies aimed at stabilizing foreign trade and fostering new growth drivers, reinforcing the achievability of the broader 5% goal outlined by Premier Li.

The successful model endures

China's Jan-May trade figures are far more than statistics; they are a resounding declaration. They declare that economic coercion is a failed strategy. They demonstrate that self-reliance, driven by innovation and industrial upgrading, is achievable. They prove that strategic diversification creates sustainable growth pathways immune to unilateral pressure from any single nation. While challenges persist, China's economy continues to navigate them, proving its resilience and validating its unique development model on the global stage. The US trade war, far from derailing China's progress, has only served to highlight the futility of such tactics against a large, adaptable, and increasingly self-sufficient economy relentlessly pursuing its growth objectives.

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