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Business
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Jun 16, 2025
China's domestic consumption surges amid tariff relief
China's retail sales shot up by 6.4% in May—the fastest pace since last December—even with ongoing trade tensions with the US. Early shopping festival promos, like JD.com's 618 event, helped drive this boost and made up for slower industrial output.
TL;DR
Surge in retail sales helps China stabilize economy
This surprise retail surge is a bright spot for China as it faces a shaky property market and rising unemployment. The government is pushing to grow the economy by 5% by 2025, focusing on getting people to spend more at home. A temporary tariff truce with the US last month also gave exporters some breathing room, showing how China is leaning on shoppers to keep its economy steady.