China’s economy likely showed stability in the first two months of the year, despite US President Donald Trump returning to office and almost instantly starting a second trade war with Beijing.

The country’s top leaders set an optimistic growth target but gave few hints of how to achieve it as their export-led strategy is challenged by rising tariffs on Chinese goods.

China is laughing all the way to the bank on Trump’s tariff policy Rana Foroohar and Shermichael Singleton debate the merits and the end game of President Trump’s tariffs. Foroohar says she isn’t against tariffs but there needs to be a more cohesive policy with America’s allies to make it successful.

China is stuck in its longest deflation crisis in decades, and the numbers keep getting worse. Prices across the country have been falling for two straight years, and analysts say 2025 could be the third.