China's Economy Hits 5% Growth Target in 2025, Exports Drive Resilience

• China's GDP grew 5% in 2025, meeting the government's target despite a recent slowdown and trade tensions with the US.
• Exports played a crucial role, helping China weather Donald Trump's trade war by boosting shipments outside the US, leading to a record $1.2 trillion goods trade surplus.
• While industrial production performed well, retail sales and investment weakened, and nominal economic growth was the slowest since 1976 (excluding 2020).
• The economy faces challenges including deflation, a persistent housing crisis, weak consumer spending, and an imbalance between strong domestic supply and weak demand.
• Beijing plans to boost consumption, prioritize tech and manufacturing, and address local government debt and cutthroat competition, but significant stimulus is unlikely.

Why It Matters: China achieved its 5% growth target in 2025, primarily driven by strong exports amidst domestic challenges.