China’s economy, the world’s second largest, recorded 5% growth in 2025, meeting the official target set by the government despite strong external pressure and internal challenges. The growth was driven mainly by solid exports, which helped offset weak domestic demand and the impact of tariffs imposed by the United States.
Despite this positive figure, economic expansion slowed in the final quarter of the year, with growth of 4.5%, the lowest quarterly rate seen in several years. This contrast highlights the difficulties facing China’s economy, particularly in sectors such as consumer spending and the real estate market.
In addition, China posted a record trade surplus, indicating that overseas sales remain a key engine of economic growth despite global trade tensions.
What does this 5% growth mean for China?
It means that, despite tariffs, weak domestic consumption, and trade tensions, China managed to maintain stable growth, although signs of a slowdown could influence its outlook for 2026.