China's Economic Growth Slows to Three-Year Low Amid Weak Demand, Property Slump

• China's Q4 economic growth dropped to 4.5%, the weakest in nearly three years, down from 4.8% in Q3.
• Full-year 2025 GDP growth met Beijing's target at 5%, despite challenges from trade tensions and property sector downturn.
• Domestic consumption remained weak in December (retail sales up 0.9%), and investment decline accelerated, particularly in property development (-17.2% in 2025).
• Exports to non-US markets drove a record $1.2 trillion trade surplus in 2025, providing some economic strength.
• Economists urge structural reforms to boost domestic consumption and reduce reliance on exports, warning of unsustainability; stimulus measures are anticipated.

Why It Matters: China's economy faces significant headwinds from weak domestic demand and a property crisis, despite meeting its annual growth target.