CNN: April 16th, China stated that despite the turmoil in Iran, its economy is currently accelerating. On Thursday, the National Bureau of Statistics (NBS) reported that China's GDP grew by 5.0% year-on-year in the first quarter of 2026, a rebound from 4.5% in the fourth quarter of last year. The economic start to the year exceeded expectations, with strong exports of mechanical and electrical products providing significant momentum. Amid short-term disruptions to global trade and energy markets caused by the conflict in the Middle East, China’s growth demonstrated resilience.

Chinese officials simultaneously highlighted ongoing economic pressures. External environment volatility has intensified, while domestic structural contradictions persist—supply remains relatively strong, but demand remains weak. Affected by the Middle East conflict starting late February, rising energy prices have driven up raw material costs, leading to visible inflationary pressures. Meanwhile, the prolonged downturn in China’s real estate market continues to suppress consumer spending intentions. Data shows that export growth has significantly slowed: exports rose 21.8% year-on-year in the first two months, but only 2.5% in March—a key factor being increased logistics costs. Nevertheless, exports still rose 14.7% year-on-year for the full quarter.

High-value-added manufacturing and green products have become key supports for exports. In the first quarter, exports of electric vehicles, lithium batteries, and wind turbines saw notable year-on-year increases. However, consumption performance fell short of expectations, as retail sales growth weakened in March, indicating diminishing effectiveness of policy-driven consumption stimulus.

CNN analysis suggests that China’s industrial data met market expectations, but changes in industrial product prices were evident. The Producer Price Index (PPI) turned positive year-on-year in March for the first time since September 2022, marking the end of China’s prolonged deflationary trend. CNN noted that this round of price increases stems primarily from energy cost pass-through, not from a recovery in domestic demand. With cost pressures likely to be passed down to consumers, household purchasing power may face further constraints, leaving uncertainty hanging over future economic growth in China.

Original article: toutiao.com/article/1862662994703360/

Disclaimer: The views expressed in this article are those of the author(s) alone.