China has reported that its economy grew at an annual rate of 5% in 2025, a figure buoyed by resilient export performance in the face of trade tariffs imposed by the United States under President Donald Trump.
Strong Exports Offset Domestic Weakness
The world's second-largest economy was supported by a surge in overseas sales, which helped to counterbalance weaker domestic consumer spending and business investment. This export strength contributed to a record trade surplus of $1.2 trillion for the year. The annual growth figure, announced on Monday 19 January 2026, was in line with the government's official target of "about 5%".
Quarterly Slowdown Points to Challenges
Despite the annual achievement, the data revealed a notable cooling in momentum as the year progressed. Growth slowed to a rate of 4.5% in the final quarter of 2025, down from 4.8% in the previous three-month period. This marked the slowest quarterly expansion since late 2022, a period still feeling the effects of the COVID-19 pandemic.
Chinese policymakers have been actively working to stimulate faster growth, as the economy continues to grapple with the aftermath of a major property market slump and lingering disruptions from the pandemic era. The reliance on strong exports to compensate for soft domestic demand underscores the ongoing structural challenges within the economy.
Meeting Targets Amid Global Headwinds
The ability to hit the "about 5%" growth goal demonstrates a degree of economic resilience, particularly given the external pressure from US trade policy. The performance suggests that Chinese export sectors successfully navigated the headwinds created by Trump's tariffs, finding markets and maintaining competitive momentum.
Analysts will now watch closely to see if the quarterly slowdown extends into 2026, or if government measures to boost domestic consumption and investment can regain traction and provide a more balanced foundation for growth.
