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China’s economy performed better than expected in the first quarter of the year – but it reflects a moment in time before the explosive trade war with the US, which has seen the world’s two biggest economies effectively decouple.

Economists had predicted that gross domestic product would grow by about 5.1% in January to March, compared with a year earlier. In the end, it grew 5.4%.

But these impressive figures obscure the very serious challenges China’s economy is facing in the wake of Donald Tump’s trade war – and it is almost certain growth will not remain this strong as the year goes on.

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Bobble-headed Trump explains China-US tariffs

The worst of Trump’s tariffs came into force in April, meaning they were not reflected in these figures.

In Q1, China faced an initial 10% tariff on all its exports to the US – which was then raised to 20% from 10 March.

But Beijing had planned and prepared for taxes at that level, and thus the impact was pretty minimal.

Growth was also propelled by the fact that exporters rushed to deliver orders in bulk before the tariffs came into force.

More on China

In fact, exports surged a remarkable 12% in March compared to a year earlier, a rate that will not be sustained.

Read more from Sky News:
White House looking at new trade deals
The art of doing a deal with Trump
US and UK ‘working hard’ on agreement

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Trump Tariffs: How the 10 days unfolded

Current tariffs on goods sold from China to America stand at 145%. Trade at that price is all but impossible.

Given exports account for a fifth of China’s economy, and consumer confidence domestically is still sluggish, there will be a significant hit to come.

Experts agree China will most likely miss its annual growth target of 5% – the question is by how much.

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Ten explosions near international airport in India-administered part of Kashmir, officials say

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Ten explosions near international airport in India-administered part of Kashmir, officials say

Ten explosions have been heard near Srinagar International Airport in India-administered parts of Kashmir, officials have told Reuters news agency.

The blasts followed blackouts caused by multiple projectiles, which were seen in the sky above the city of Jammu earlier on Friday.

Explosions were also heard in the Sikh holy city of Amritsar, in the neighbouring Punjab state, according to Reuters.

An Indian military official told the agency that “drones have been sighted” and “they are being engaged”.

It comes as tensions between India and Pakistan across the line of control around the region of Kashmir have boiled over this week, leading to fears of a wider conflict.

Map of where explosions were reported in Kashmir and from where

On Wednesday morning, India carried out missile strikes in Pakistan and Pakistan-administered parts of the disputed region.

The retaliation came weeks after 26 people, mainly Indian tourists, were shot dead by gunmen in an India-administered part of Kashmir last month.

The government in India said it hit nine “terrorist infrastructure” sites, while Pakistan said it was not involved in the April attack and the sites were not militant bases.

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Explained: India-Pakistan conflict

Around 48 people have been killed since Wednesday, according to casualty estimates on both sides – which have not been independently verified.

India also suspended its top cricket tournament, the Indian Premier League, as a result of rising tensions, while the Pakistan Super League moved the remainder of its season to the United Arab Emirates.

Meanwhile, White House press secretary Karoline Leavitt said at a conference on Friday that the US is in constant contact with both India and Pakistan.

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Pope Leo: How voting for new pontiff unfolded behind closed doors of the conclave

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Pope Leo: How voting for new pontiff unfolded behind closed doors of the conclave

Conclaves are famously unpredictable affairs – and once again the election of Cardinal Robert Francis Prevost as the new pope caught many by surprise.

The newly elected Pope Leo XIV won the consensus of the 133 cardinal electors after only four ballots – a fast process for a diverse college of cardinals.

Though his name had circulated among some Vatican watchers, other cardinals had emerged as clear front-runners, including Pietro Parolin – the Vatican’s number two who would have been the first Italian in almost 50 years to become pontiff – or Luis Tagle, a Filipino cardinal looking to become the first Asian pope.

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What are the conclave’s secrecy measures?

Instead, it was the first North American to win the highly secretive process.

So, what went on behind the closed doors of the Sistine Chapel?

Until Thursday lunchtime, Cardinal Parolin was ahead, gathering between 45 and 55 votes, sources say.

A substantial number, but well short of the 89 votes he needed for a two-thirds majority.

At this point, Cardinal Prevost had between 34 and 44 votes.

But as the Italian struggled to grow his support during the first three rounds of voting, he stepped down from the race, endorsing Prevost instead, Sky News understands.

Read more:
Who is Pope Leo XIV?
List of demands in new pope’s in-tray
How does new pope compare to his predecessors?

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Who is Pope Leo?

An internal battle between Luis Tagle and Pablo Virgilio David – both cardinals hailing from Asia – cancelled out both of their chances.

And a contender from Africa – the most conservative sector of the church – was never likely for a conclave where the overwhelming majority of cardinals had been appointed by Francis, a progressive pontiff, sources say.

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Moment new pope emerges on balcony

An American pope has long been seen as highly improbable, given the geopolitical power of the US.

But Cardinal Prevost was able to draw from across the groups making up the electors: moderate US cardinals, South American cardinals and many European cardinals all coalesced around him.

Italian newspaper La Repubblica said Prevost “certainly attracted cross-party preferences, both ideologically and geographically”.

“In the conclave he was the least American of Americans: Born in Chicago, he lived 20 years in Peru,” the newspaper said.

It added: “As a man used to teamwork, Prevost appeared to many as the right man to make the papacy evolve into a more collegial form.”

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Russia’s Victory Day parade felt more like a celebration of war than peace

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Russia's Victory Day parade felt more like a celebration of war than peace

Standing on Red Square, this was an intimidating sight, which felt much more like a celebration of war rather than peace.

I could feel the ground shake as the tanks rolled past, their caterpillar tracks on the ancient cobbles providing a deafening clatter.

The hairs on the back of my neck stood up in fear as the phalanxes of troops roared “Hurrah” in response to their commander in chief.

And the sight of combat drones being paraded on their launchers was actually quite sickening. Weapons that have been at the forefront of Russia’s invasion of Ukraine were paraded in a show of pomp and patriotism.

Russian President Vladimir Putin and his Chinese counterpart Xi Jinping
Image:
Xi Jinping and Vladimir Putin watch the procession. Pic: Reuters

Ukraine war latest: Putin welcomes Xi at Victory Day parade

For the rest of Europe, the 80th anniversary of the end of the Second World War has been a celebration of peace, but this felt much more like a celebration of war.

And it wasn’t just military hardware on display here, but the very identity of modern Russia.

A general view shows Red Square during a military parade on Victory Day, marking the 80th anniversary of the victory over Nazi Germany in World War Two, in central Moscow, Russia, May 9, 2025. Vladimir Astapkovich/Host agency RIA Novosti/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY.
Image:
Pic: Reuters

For this is a country that is now defined by its military and its memory. The glory and sacrifice of 1945 have been weaponised to give credence to Russia’s current course and to make people believe that victory is their right.

For Russians, it served as a rallying cry and there was applause when the troops who have fought against Ukraine marched past.

But for those watching in Kyiv and other European capitals, it was an overt warning that Moscow has no intention of backing down.

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Putin hails sacrifice of Russian troops

The parade was considerably larger in scale than in recent years, when units and hardware have been needed on the battlefield. I think it was a deliberate attempt to project an image of confidence, and so was Vladimir Putin‘s positioning of his guests.

China’s Xi Jinping was given a prime position on the Kremlin leader’s right-hand side. It was no surprise given the economic lifeline Beijing has provided, but it felt like a particularly pointed gesture to the West – that they were looking at a new world order.

Despite that appearance of confidence, there were signs of Moscow’s unease that the parade could be disrupted.

There were snipers on every rooftop. Security was extremely tight. And the mobile internet signal across the city centre was completely shut down for fear of Ukrainian drone attacks, meaning none of the international media that had gathered could broadcast any live transmissions.

After the parade finished, Putin saluted the crowds as they spontaneously erupted into rhythmic shouts of “Rus-si-ya” at the sight of him.

Another PR coup complete without interruption, he will have departed as a very happy man.

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