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China’s GDP grew by a seasonally adjusted 1.1% in Q2 2025, beating market forecasts of 0.9% despite slowing slightly from a 1.2% increase in Q1. The stronger-than-expected result reflected the positive effect of a series of policy support measures from Beijing, including interest rate cuts and increased liquidity injections to support the tariff-hit economy. In May, China and the U.S. agreed to a trade truce, committing to roll back most tariffs. A follow-up meeting in London in June produced a framework that included Beijing expediting approvals for rare-earth exports and Washington easing curbs on advanced technology access and student visas for Chinese nationals. Still, with an August 12 tariff deadline looming, Beijing faces pressure to reach a more permanent deal. Meanwhile, China’s statistics agency noted the economy maintained steady growth with solid momentum, highlighting its resilience, but warned of rising external uncertainties and continued weakness in domestic demand.