China's economy grew by 5.4% in the first quarter year-on-year as a tit-for-tat trade war with US President Donald Trump escalates China's economy grew by 5.4% year-on-year in the first three months of the 2025, according to data just released by the government.

Beijing has suspended exports of certain rare earth minerals and magnets that are crucial for the world’s car, semiconductor and aerospace industries.

President Trump released a new statement on China saying that the country needs to come to the U.S. to make a trade deal to lower the tariffs the U.S. has levied against China, because the country needs U.

Nvidia Corp.’s shares were tumbling in after-hours trading Tuesday, after the chip giant disclosed in a regulatory filing that it expects to include charges of up to $5.5 billion in its fiscal first quarter related to licensing of its chips to the Chinese market.

The chip manufacturing giant, which has been at the heart of the AI boom, will require licences to export its H20 AI chip to China.

China's exports likely picked up pace in March, as factories rushed out shipments ahead of U.S. President Donald Trump's sweeping tariffs this month, though the broadening trade war with the United States has darkened the economic outlook.

China’s exports surged in March as shipments were likely front-loaded before President Trump’s “Liberation Day” tariffs, but they are expected to falter in the coming months.

The country, a key destination for California's billions of dollars in exports, has imposed an 84% tariff on U.S. goods.