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China's factory, retail sectors shine as trade tensions with the US thaw

Industrial output growth hits 5-month high and retail sales beat forecasts as government stimulus seen supporting growth.

China Economy, Inflation
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China Economy, Inflation

Kevin Yao and Stella Qiu | Reuters Beijing
Growth in China's industrial and retail sectors beat expectations in November, as government support propped up demand in the world's second-largest economy and amid easing trade hostilities with Washington.

The set of upbeat figures released on Monday follow firm signs of progress in Sino-U.S. trade negotiations over the weekend after the world's two largests economies announced a "phase one" trade deal that would nearly double U.S. exports to China.

However, growth in infrastructure and the property sector, both key growth drivers, remained lacklustre in November, underlining key challenges for Beijing in its efforts to stabilise economic performance next year.

Industrial production rose 6.2%