China’s Economy Beats Expectations with 5% GDP Growth Despite Iran Conflict Volatility

According to the National Bureau of Statistics (NBS), China’s economy gained momentum early this year, driven by a surge in high-tech exports. Green technology products, including electric vehicles and lithium batteries, saw exports jump by 78% and 50% respectively.

However, the NBS has warned of a "complex and unstable" external environment as the war in the Middle East weakens global demand and inflates energy costs. While manufacturing remains robust, domestic consumption continues to underperform, with retail sales growth slowing to 1.7% in March. Analysts suggest that while China remains a dominant export power, its increasing reliance on external demand makes it vulnerable to the prolonged effects of the Iran-Israel war and rising raw material costs.