China's economy grows 5 per cent in 2025

Key points

China’s economy grew 5% in 2025, hitting the official target.
Growth slowed to 4.5% in the December quarter, the weakest since late 2022.
Exports drove a record $US1.2 trillion trade surplus, offsetting weak domestic demand and US tariff pressure.

China's economy expanded at a 5 per cent annual pace in 2025, buoyed by strong exports despite US President Donald Trump's tariffs.

However, growth slowed to a 4.5 per cent rate in the last quarter of the year, the country’s government said on Monday.

That was the slowest quarterly growth since late 2022, during the COVID-19 pandemic. The economy, the world's second largest, grew at a 4.8 per cent annual pace in the previous quarter.

China's leaders have been trying to spur faster growth after a slump in the property market and disruptions from the pandemic rippled through the economy.

As expected, annual growth last year was in line with the government's official target for an expansion of "about 5 per cent".

Strong exports helped to compensate for weak consumer spending and business investment, contributing to a record trade surplus of $US1.2 trillion.

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Global exports surge

Chinese exports to the US suffered after President Donald Trump returned to office early last year and began raising tariffs.

But that decline was offset by shipments to the rest of the world. Soaring imports of Chinese goods are leading some other governments to take action to protect local industries, in some cases raising import duties.

China's leaders have repeatedly highlighted boosting domestic demand as a policy focus, but their effects have so far been limited. A trade-in program for drivers to replace older cars with more energy-efficient models, for example, has been losing steam in recent months.

China has also provided trade-in subsidies for home appliances such as refrigerators, washing machines and TVs.

Investments in artificial intelligence and other advanced technologies remain a key priority for China's ruling Communist Party as it moves to boost self-reliance and rival the US.

Many ordinary Chinese and small businesses are struggling with tough times and troubling uncertainty over jobs and incomes.

Some economists and analysts believe China's actual economic growth in 2025 was slower than official data suggest. The Rhodium Group, a think tank, said last month it expected China's economy to grow only by 2.5 per cent to 3 per cent last year.