China's economy grew at a slightly faster pace than expected in the second quarter, showing resilience in the face of U.S. tariffs, though analysts warn of intensifying headwinds that will ramp up pressure on policymakers to roll out more stimulus.

China has shown itself to be more resilient against tariffs than many expected. But stockpiling, supplier renegotiations, and the tariff truce with the US may have only delayed the pain. Domestic demand remains the Achilles’ heel,

The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its GDP growth forecast to 3.05 percent this year on a robust first-half performance, but warned that US tariff threats and external uncertainty could stall momentum in the second half of the year.