China's Economy Grows 5% in 2025 Despite Trump Tariffs, Exports Drive Growth

• China's economy expanded by 5% annually in 2025, meeting the government's target, primarily driven by strong exports despite US President Donald Trump's tariffs.
• Quarterly growth slowed to 4.5% in the last quarter of 2025, the slowest since late 2022 during the COVID-19 pandemic.
• Strong exports compensated for weak consumer spending and business investment, leading to a record trade surplus of $1.2 trillion.
• While exports to the US suffered due to renewed tariffs, increased shipments to other global markets offset this decline.
• China's leaders are focusing on boosting domestic demand and investing in AI and advanced technologies for self-reliance, though challenges like a property market slump and weak consumer confidence persist.

Why It Matters: China's economy grew 5% in 2025, fueled by exports, but faces challenges in domestic demand and property.