In the initial two months of the year, China's industrial output showed a decrease, and retail sales growth slightly accelerated, indicating a mixed start for the economy, amidst pressure from U.S. trade tariffs. Following low export numbers and inflation indicators earlier, the recent data reflects the need for more policy support to sustain economic recovery.

China's aim for an economic growth target of "around 5%" by 2025 faces challenges due to trade pressures, weak household demand, and a lingering property crisis. Analysts observe a positive start to the year's momentum despite the economy experiencing deflation. Retail sales growth was supported by subsidies, particularly in the sales of home appliances and mobile phones.

U.S. President Donald Trump has imposed further tariffs on Chinese goods with a looming threat of additional actions, affecting an already struggling Chinese economy. Industrial output in the first two months of the year expanded by 5.9%, slightly slower than December's 6.2%. Retail sales saw a 4.0% increase during January-February, surpassing the December growth rate of 3.7%.

Holiday spending during the Lunar New Year holidays boosted household consumption in the initial months, with the movie "Nezha 2" topping box office records. To minimize the holiday impact, China combines data for January and February projects.

During the annual parliamentary meeting, China's leaders promised enhanced fiscal and monetary support for the economy, focusing on boosting domestic demand as a crucial objective. Measures include a 300 billion yuan ($41.5 billion) consumer goods trade-in scheme for electric vehicles and appliances. A "special action plan" has been unveiled to intensify domestic consumption by raising residents' income and establishing a childcare subsidy plan.