China economy hopes rise after US trade reprieve

Analysts bumped up their projections for China’s economy this year, buoyed by Washington and Beijing suspending their tit-for-tat tariffs.

Goldman Sachs, JPMorgan, Morgan Stanley, and UBS all raised their forecasts for GDP growth in the world’s second-biggest economy, while Citi and Nomura made bullish calls on Chinese and Hong Kong equities.

Beijing also trumpeted its success in its standoff with Washington, with a former editor of the Communist Party mouthpiece Global Times writing, “This is called ‘victory’.”

Yet even the upgraded economic forecasts fell below China’s own 2025 target of 5% GDP growth, and one analyst cautioned against excessive positivity over the US-China trade war reprieve: “This is a temporary pause, not a breakthrough,” she told CNBC.