China's Quiet Economic Renaissance May Thwart Trump's Expectations
China's economic situation is stronger than many might think, despite US President Donald Trump's focus on his own foreign policy agenda.
The country's rebound in domestic economic activity has been particularly notable, with retail sales, industrial production, and business investment all showing significant gains. Consumer inflation has also reached a three-year high, while producer disinflation is at its lowest point in 18 months.
This turnaround comes after China faced challenges related to the world's largest property bust and lingering deflation earlier this year. Despite these issues, official data for January and February shows that economic activity has been surprisingly strong.
Furthermore, China's focus on energy security has put it in a good position to weather the current oil shock caused by the US-Israeli war in Iran. With its huge stockpiles and ability to maintain exports to Europe and Asia, China is not feeling pressured to answer Trump's request for help reopening the Strait of Hormuz.