China’s economic direction in early 2025 is drawing close scrutiny, not only due to ambitious fiscal targets but also because of external factors, particularly heightened tariff pressures from the United States. According to the latest data released by China’s Ministry of Finance, tax revenues from January to March reached 6.0 trillion yuan (approx. $821.54 billion), representing a year-over-year decline of just 1.1%. For comparison, during the first two months of the year, the drop was 1.6%, indicating a modest slowdown in the pace of revenue reduction.

The Chinese economy has once again emerged as a focal point in the global arena due to recent developments on the international trade front. The imposition of new tariffs on Chinese goods, as announced by U.S. President Donald Trump, caught not only global analysts but also Chinese policymakers off guard. Goldman Sachs, one of the world's leading financial institutions, highlighted in its report on Sunday that these tariffs will result in a significant reduction of China’s GDP growth by at least 0.7 percentage points this year.