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Companies redirected exports through other countries to avoid U.S. tariffs, and policymakers turned up investment in manufacturing and infrastructure.

July 14, 2025, 10:02 p.m. ET
China’s economy grew at a steady pace in the spring, according to official figures, bolstered by domestic investment in factories and big projects like high-speed rail lines and a continued flood of exports throughout the world.
In the second quarter of the year, from April through June, China’s economy grew 1.1 percent over the previous three months, the National Bureau of Statistics announced on Tuesday. If that pace continues, the economy will expand at an annual rate of about 4.1 percent — only slightly slower than the growth in the first three months of this year.
The report on China’s gross domestic product, or G.D.P., shows how the country’s manufacturing-focused economy has been roiled by President Trump’s steep tariffs, which briefly reached 145 percent in late April and early May. Separate trade data, including a report released Monday, shows that China’s exports to the United States have slumped. But its exports to other countries have jumped, particularly goods sent to Southeast Asia — many of which are re-exported to the United States — and to Europe.
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Takeaways: What the Latest Numbers Show
In the first three months of the year, the Chinese economy got a boost when many overseas buyers accelerated orders in anticipation of tariffs. The performance in the second quarter was better than many analysts had expected a few months ago.
Output has been strong enough that some analysts have begun raising their forecasts for the entire year. One research firm, Oxford Economics, last week raised its prediction for 2025 to 4.7 percent from its previous estimate of 4.3 percent.