China's economy grew by 5 percent in the first quarter of 2025, outperforming analyst expectations even as the conflict involving the United States, Israel, and Iran disrupts global energy markets. However, economists warn that underlying vulnerabilities — including weak domestic consumption, a troubled property sector, and a declining population — continue to pose structural risks to sustained growth. Beijing is responding by channelling investment into high-tech industries and green energy, sectors where China already holds dominant positions in global supply chains, while its energy import relationships may offer some insulation from the wider disruption caused by the Iran conflict.