BEIJING, July 18, 2025 (BSS/AFP) - China's economy is still facing a "very severe and complex situation", its minister of commerce said Friday, suggesting the government would take action to counter challenges ahead.

Growth came in at 5.2 percent in the second quarter, official data showed Tuesday, but analysts have warned that more work was needed to avoid a slump in the second half of year.

The knock-on effects of trade turmoil abroad threaten Beijing's exports just as it becomes more reliant on them to stimulate economic activity, as domestic consumption remains stubbornly sluggish.

"We are still facing a very severe and complex situation. Global changes are unstable and uncertain. Some of our policies will provide some new responses according to the times and circumstances," Wang Wentao told journalists at a news briefing.

"Our toolbox is plentiful, and we will be fully prepared."

Asked specifically about China's reliance on exports, Wang suggested the government was preparing policies to "further stimulate the momentum of our consumption development".

"China's economy is improving, and the long-term fundamentals have not changed, the consumption market's characteristics of great potential, strong resilience and vitality have not changed," he said.

"We are also promoting new forms of consumption... for example Pop Mart, these kinds of new trends, new fashions and styles... the Labubu phenomenon has swept the world."

Beijing-based toymaker Pop Mart's Labubu monster dolls have become a must-have item internationally, adorning the handbags of celebrities such as Rihanna and Cher.