Exports to the US Decreased, China's Economy Still Grows 5 Percent

ILLUSTRATION UNSPLASH/runningchild

JAKARTA - China's economy in the January-March 2026 period recorded real growth of 5.0 percent year-on-year.

China's official data showed the expansion rate increased from 4.5 percent in the previous quarter, supported by strong export performance despite the United States (US) and Israel's raids against Iran.

The increase in gross domestic product (GDP) adjusted for inflation in the world's second largest economy, which was the first acceleration in five quarters, was in line with the growth target of 4.5 to 5 percent for 2026.

As reported by ANTARA from Kyodo, Thursday, April 16, on a quarterly basis, China's GDP in the first three months of 2026 grew 1.3 percent compared to the previous quarter, higher than the 1.2 percent growth in the October-December period.

The Iran war that began on February 28 has caused supply chain disruptions and a global spike in energy prices, but the negative impact on China's economy so far has been limited.

China's National Bureau of Statistics said the economy in the first quarter "started well with the recovery of key macroeconomic indicators and the rapid development of new growth drivers."

"However, we must realize that the external environment is becoming increasingly complex and unstable, the imbalance between strong supply and weak demand is still quite sharp, and the foundation for economic growth is not yet fully solid," the agency added.

In the January-March period, the total export value increased by 11.9 percent, while imports jumped 19.6 percent.

China's exports to the US have declined due to trade tensions after President Donald Trump returned to the White House in January last year, but shipments to other Asian countries and the African region have actually increased.

Retail sales of consumer goods grew 2.4 percent year-on-year, while fixed asset investment, excluding rural households, rose 1.7 percent. However, investment in the property sector fell 11.2 percent amid the prolonged crisis in the sector.

Industrial production in China, known as the "factory of the world," increased 6.1 percent.

On Tuesday, the International Monetary Fund (IMF) estimated that China's economic growth would slow to 4.4 percent this year from 5.0 percent in 2025, influenced by the impact of the war in the Middle East as well as weak domestic consumption.

In its annual parliamentary session in March, China set a 2026 GDP growth target at its lowest level since the early 1990s, amid various challenges including a property sector crisis and global geopolitical uncertainty.