China's economy grew by 5.4% in the first quarter year-on-year as a tit-for-tat trade war with US President Donald Trump escalates China's economy grew by 5.4% year-on-year in the first three months of the 2025, according to data just released by the government.

President Donald Trump is heading into another volatile week of his trade wars facing an urgent need to de-escalate the conflict he ignited with China before it inflicts deep damage on the US economy.

The U.S. government ”indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China,” Nvidia said.

Nvidia Corp. faces new US restrictions on the export of its H20 chip to China, a policy change that will cost the company billions of dollars and hamstring a product line that it explicitly designed to comply with previous curbs.

The U.S. Commerce Department said on Tuesday it was issuing new export licensing requirements for Nvidia's H20, AMD's MI308 artificial intelligence chips, as well as their equivalents, to China.

China's exports likely picked up pace in March, as factories rushed out shipments ahead of U.S. President Donald Trump's sweeping tariffs this month, though the broadening trade war with the United States has darkened the economic outlook.

China’s exports surged in March as shipments were likely front-loaded before President Trump’s “Liberation Day” tariffs, but they are expected to falter in the coming months.

The country, a key destination for California's billions of dollars in exports, has imposed an 84% tariff on U.S. goods.