FirstFT: China economy rebound beats expectations

China’s economy expanded 4.5 per cent year on year in the first quarter, beating analyst expectations. Strong growth in exports and infrastructure investment as well as a rebound in retail consumption and property prices drove the recovery in the world’s second-largest economy.

The first-quarter growth rate was still short of the government’s full-year target of 5 per cent, but economists expect it to pick up pace as the year progresses.

Xi, who formally embarked on an unprecedented third term as China’s president last month, is keen to revive economic growth and restore business confidence damaged by pandemic controls.

China’s rebound is crucial to global economic growth this year as developed nations grapple with high inflation, rising interest rates and sluggish expansion.

Here is what else I will be keeping tabs on today:

• UK inflation: Consumer Price Index data for March is set to be released.

• Federal Reserve Beige Book: The US central bank will release its outlook on current economic conditions.

• Earnings: Tesla, IBM, Morgan Stanley, Equifax, Just Eat, L’Oréal and United Airlines report earnings today.

  FT subscribers can sign up to Inside Politics’ online event today, which will chart the road to the UK’s expected 2024 general election and explore whether a victory for the Labour party is no longer assured.

Five more top stories

1. Rupert Murdoch’s Fox Corporation has agreed to pay $787.5mn to settle a defamation case over US election fraud allegations broadcast by his news network, a lawyer for voting machine maker Dominion said. The two parties reached a last-minute settlement deal, just before a six-week trial was set to begin. Read the full story.

2. The top US military commander in the Indo-Pacific told Congress that the Chinese threat to Taiwan had increased, but declined to endorse other top military officials who have suggested timelines for a possible conflict. “I think everybody is guessing,” Admiral John Aquilino said.

3. Goldman Sachs’ first-quarter profits slumped 18 per cent following a lacklustre performance at its fixed-income trading unit. The results underscore the difficult task facing chief executive David Solomon.

4. HSBC has “exaggerated” the “costs and risks” of spinning off its Asian operations, according to Chinese insurer Ping An, as the bank’s largest shareholder used a rare public statement to lay out how it should separate the business. The statement marks the first time Ping An has publicly said how the bank should split off its Asia operations.

5. Evan Gershkovich has lost his appeal in a Moscow court to be released from pre-trial detention. The hearing for the Wall Street Journal reporter arrested in Russia on espionage charges marked Gershkovich’s first public appearance since his arrest.

The deep dive

On one side of the conflict in Sudan is the president of Sudan’s military government, who has the backing of Egypt and boasts powerful ground and air forces. Opposing him is Sudan’s vice-president who oversees the paramilitary Rapid Support Forces and has powerful Gulf backers. The two men hold the fate of Sudan in their hands.

We’re also reading and listening to . . . 

• China-Vatican tensions: A deal between the Vatican and China over the church’s role in the communist state appears to be fraying.

• Step on the gas: The slowdown in car sales in China has been particularly brutal for Japanese brands. “There are clear signals that [Toyota] is at a tipping point,” said a Mizuho Bank senior research officer in Tokyo.

• ???? Behind the Money: It’s time to hit the books with Behind the Money: Night School. In our first episode, we have a primer on US energy policy — one of the biggest economic stories of the year.

Chart of the day

Tim Cook opened the first Apple Store in India yesterday, as the iPhone maker stepped up its battle with Samsung over the growing luxury smartphone market in Asia’s second-biggest economy. Apple accounted for just under 5 per cent of total handsets sales in India last year.

Take a break from the news

This year’s International Booker shortlist includes work by a couple of published poets, a film director and a former security guard. Catch up on these acclaimed titles before the winner is announced next month.

Additional contributions by Gordon Smith and Tee Zhuo