China’s Strengthening Economy Bolsters Its Hand in Trump Trade Talks

• Chinese gross domestic product rose 6.4% in the first quarter from a year earlier, beating economist estimates.
• The better-than-expected number was driven by March data, with retail sales growth for the month at 8.7% and factory output recording a surprise 8.5% jump. 
• The data comes after authorities in Beijing introduced a string of economic measures to counter the headwind of the trade war. 
• Underscoring how the government and ruling party remain active shepherds of the credit cycle, an incentive program offers cheap loans to borrowers who study President Xi Jinping’s thoughts and help promote the Communist Party.

(Source: Bloomberg)