China's 2025 Economy Grows 5% Amid Export Strength, US Tariffs | Quick Digest

China's 2025 Economy Grows 5% Amid Export Strength, US Tariffs | Quick Digest
China's economy grew by 5.0% in 2025, meeting its official target, largely due to strong exports and a record trade surplus that defied US tariffs. However, domestic challenges like weak consumer spending and a property slump persisted, with growth slowing in the fourth quarter.

China's 2025 GDP expanded by 5.0%, achieving the government's target.

Strong exports generated a record $1.2 trillion trade surplus, mitigating US tariffs' impact.

Fourth-quarter 2025 growth slowed to 4.5%, the weakest since late 2022.

Weak domestic consumption and a prolonged property crisis remain significant challenges.

The IMF raised its forecast for China's 2025 economic growth to 5.0%.

China's economy successfully met its official growth target for 2025, expanding by a reported 5.0% annually, according to data released by the National Bureau of Statistics on January 19, 2026. This achievement aligns with Beijing's stated goal of "around 5%" growth, a figure that, while modest by historical Chinese standards, outpaced many major global economies. A significant driver of this performance was China's robust export sector, which recorded a record trade surplus of $1.2 trillion in 2025. These strong exports successfully defied the impact of US tariffs, particularly those reinstated under President Donald Trump, by diversifying shipments to other international markets, including Europe and Southeast Asia. However, the official figures also revealed underlying challenges within the world's second-largest economy. Growth momentum decelerated throughout the year, with the fourth-quarter expansion slowing to 4.5% year-on-year, marking the weakest quarterly performance since late 2022. Domestic demand remained weak, impacted by subdued consumer spending, a prolonged downturn in the property market, and declining fixed-asset investment. While some analysts suggest the official GDP figures may overstate the actual economic expansion, the International Monetary Fund (IMF) still raised its forecast for China's 2025 growth, acknowledging the resilience. Chinese authorities have indicated plans to continue efforts to stimulate domestic demand and maintain stability in 2026, despite a complex external environment and ongoing structural issues. The 2025 performance underscores China's increasing reliance on exports amidst domestic economic rebalancing.
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