China's economic recovery has shown divergent trends with industrial production surpassing expectations while retail sales lag. Official data from the National Bureau of Statistics (NBS) indicates that industrial production grew 6.7% year-on-year in April, exceeding the forecast of 5.5%. Conversely, retail sales only increased by 2.3%, falling short of the 3.7% anticipated by analysts.

Despite the mixed recovery, China continues to face challenges, particularly in the property sector, which has experienced a significant slump. To address these issues, the Chinese government plans to implement additional stimulus measures, including the sale of RMB 1 trillion ($140 billion) in ultra-long bonds by the People’s Bank of China. The State Council is also set to meet to discuss solutions for the struggling housing market.

Trade tensions with the US and EU have escalated, with US President Joe Biden raising tariffs on $18 billion worth of Chinese imports and the EU launching anti-subsidy investigations into Chinese industries. China has indicated it will respond firmly to these tariffs.

In April, China's car production surged by 16.3%, though sales declined by 5.6%. Fixed-asset investment grew 4.2% year-on-year from January to April, and high-tech manufacturing saw an 11.3% increase. However, property prices in top-tier cities fell by 2.5% year-on-year.

The NBS report underscores the need for stronger domestic demand, and officials have hinted at forthcoming policies to balance supply and demand in the housing market and foster high-quality sector development. As part of these efforts, some local governments are trialing programs to convert unsold apartments into affordable housing.

This data reflects ongoing efforts to stimulate the Chinese economy amidst a complex global trade environment and domestic market challenges.