China reported a better-than-expected economic growth as the world’s second largest economy took advantage of a trade truce with the US amid President Donald Trump’s tariff offensive.

Why have the data released this week surprised global analysts for the second time in two quarters? What domestic and external challenges does China’s economy face, and how has it managed them?

China’s economy has shown a robust growth capacity, expanding at a vigorous 5.2% in the last quarter, despite the shadows cast by ongoing trade tensions with the United States. The government’s data reflects a mixed bag of successes and challenges as the country navigates through the complexities of international trade.