China’s economy grows at 5% in first quarter, shrugging off initial impact of Iran war

China’s economy grew by 5% in the first quarter of this year, despite the ongoing Iran war, surpassing economists’ expectations. This growth was an improvement from the previous quarter’s 4.5% and marked the fastest quarterly growth in a year. While the war has increased energy prices and inflation, China’s economy has remained resilient in the short term. However, experts warn that prolonged conflict could eventually impact global demand for Chinese exports. The International Monetary Fund has adjusted its growth forecast for China to 4.4% by 2026 due to these uncertainties. Industrial output in China rose by 5.7% in March, driven by strong global demand for electronics and other goods, although domestic retail sales lagged. China’s reliance on exports remains crucial, but the ongoing war may challenge this strategy as global economies face difficulties. QUESTION: How might the ongoing Iran war influence the future of global trade and China’s role in it?