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China’s economy rebounded ahead of Iran crisis

Beijing warns of geopolitical risks even as key indicators show growth

China’s factory output and retail sales jumped at the start of the year, in a boost to the world’s second-largest economy as it faces mounting uncertainty from the escalating crisis in the Middle East.

Industrial production added 6.3 per cent year on year in January and February compared to the same period a year earlier, while fixed asset investment rose 1.8 per cent after a rare decline in 2025.

Retail sales increased 2.8 per cent year on year, beating analyst expectations but lagging behind the overall growth target.

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