The offshore yuan held steady at approximately 7.32 to the dollar on Wednesday, spurred by China’s release of surprisingly robust economic data. In the first quarter of 2025, China’s GDP witnessed growth that surpassed expectations, marking the most substantial expansion in a year and a half. Complementing this favorable economic landscape, March saw a significant surge in industrial output, achieving its fastest rate of growth since June 2021 and comfortably exceeding market predictions. Retail sales also demonstrated impressive performance, with their most rapid increase since December 2023, likewise surpassing market expectations. On the employment front, the unemployment rate in March 2025 experienced a decline, following a two-year peak in the previous month. These positive developments were largely supported by ongoing policy measures designed to strengthen the Chinese economy. Nonetheless, escalating trade tensions between the US and China pose a threat to this optimistic outlook. Recently, President Trump initiated an investigation into potential new tariffs on key minerals imported predominantly from China, prompting renewed concerns.