China’s domestic consumption surprisingly jumped as the economy rode out the tariff rollercoaster in May, offering a confidence boost to Beijing as it stares down the threat of a prolonged trade war with the US.

President Donald Trump and officials from China announced that they have agreed on a framework for a trade deal between the two major economic powers.

The US has reached a new trade agreement with China under which all Chinese imports will face a 55% tariff, while American exports to China will be subject to a reduced 10% tariff. This was the result of two days of talks between diplomats from the two nations in London.