China’s Export-Led Growth Exposes Economy to Steeper Tariff Hit

China’s stronger-than-expected growth in the first quarter revealed a growing dependence on foreign demand, a key vulnerability that raises the threat of a sharper economic hit as trade tensions soar.

Nearly 40% of first-quarter expansion in gross domestic product — which came in at 5.4% — was driven by net exports, the highest share for this period in over a decade. That’s also up from last year, when trade accounted for almost a third of overall growth.

That heavy dependence on foreign demand comes at a precarious time. With the US ramping up tariffs on Chinese goods and ...