China's National Bureau of Statistics revealed that the country's gross domestic product (GDP) for the entire year of 2025 grew by 5%, successfully reaching the government's set target of "around 5%". The main factor was a record trade surplus of 1.19 trillion U.S. dollars, especially due to expanding exports to markets beyond the United States to avoid the impact of U.S. President Donald Trump's tariff policies.
The Chinese government reported that the economy grew 5% last year, meeting its annual growth target despite volatility caused by U.S. President Donald Trump's tariff policies. The primary driver was record-high exports. However, in the last quarter of the year (October to December), growth slowed to 4.5% compared to the same period the previous year, reflecting increasing pressure.
Although the overall figures look positive, the domestic economy still faces chronic problems, including a real estate crisis. Housing prices in December dropped by 2.7%, marking the steepest decline in five months, while investment in real estate plunged by 17.2% over the entire year.
Retail sales in December grew by only 0.9%, the lowest in three years, indicating that Chinese consumers remain highly cautious about spending. However, the manufacturing sector remains a strength, with industrial output in December expanding by 5.2%, higher than the previous month.
Kang Yi, director of China's National Bureau of Statistics, acknowledged that the economy is facing a situation of "strong supply but weak demand," but expressed confidence that growth stability can be maintained this year.
In 2026, China will continue to contend with intensified U.S. tariff policies, especially with Trump's threats to increase tariffs on countries trading with Iran or opposing plans to control Greenland.
Beyond economic issues, China is also confronting an escalating "population crisis," with population numbers declining for the fourth consecutive year to just 1.41 billion people. The birth rate has fallen to only 5.63 births per 1,000 people, while the rapidly aging society has led to forecasts that hundreds of millions of workers will gradually exit the labor force over the next decade.
The Chinese government has pledged to implement more proactive fiscal policies this year to stimulate domestic spending and reduce reliance on exports, aiming to balance the economy in the long term.
. BBC