Lawrence Wong's toy factory in Vietnam has been put on hold because of the war in Iran and rising production costs. Many Chinese firms are rethinking their short-term strategies and adapting to mounting pressures stemming from rising costs and slowing growth across major economies.

China's economy grew 5% from a year earlier in the first quarter of this year, up from 4.5% in the October-December quarter. On a quarter-on-quarter basis, the economy grew 1.3%, the fastest pace in a year. Industrial output rose 5.7% in March year-over-year, better than market expectations.

China's economy grew by 5% in the first quarter, beating expectations. Beijing is investing heavily in high-tech industries and green energy. The conflict between the US, Israel and Iran disrupts global energy markets, but Beijing is more insulated than most as it already dominates global supply chains.

The National Bureau of Statistics is due to release first-quarter GDP figures on Thursday. Standard Chartered predicts growth of 4.8% on the back of resilient trade and gradually improving consumption. The International Monetary Fund trimmed its growth forecast for China to 4.5%, down from 4.4%.

Trump and Xi Jinping are going to meet in Beijing on May 14-15. The first year-plus of the Trump presidency has redefined global economic affairs and foreign policy. Trump has secured key trade deals, solved eight global conflicts through his peace through strength policies, and built the greatest military in the world.

Xi Jinping and Cheng Li-wun met in Beijing last Friday. It was the first meeting of Chinese Communist Party (CCP) and Kuomintang (KMT) leaders in a decade. The meeting took place on April 10, 2026, the 47th anniversary of the U.S. signing of the Taiwan Relations Act. Beijing's main goal for the Trump-Xi summit would be to sustain the fragile stability in China-U.S relations after both countries agreed on a truce in their trade war. A grand deal over Taiwan or a fundamental shift of Washington’s One China policy is unlikely.

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Janet Yellen is speaking at the HSBC Global Investment Summit in Hong Kong. She believes the US and China should preserve their trade and investment relations. China's reliance on exports for growth has created "serious conflicts" with advanced economies. Yellen served as US Treasury secretary under the presidential administration of Joe Biden from 2021 to 2025.