China's economy grew five per cent in 2025, meeting its target by boosting exports to offset weak domestic demand, reported Reuters.

The record trade surplus reached US$1.2 trillion, up 20 per cent from 2024, as shipments to Europe and Latin America rose while exports to the US fell. Analysts warn the strategy is hard to sustain and risks sparking protectionist backlash abroad.

Industrial output rose 5.9 per cent last year, but retail sales grew only 3.7 per cent and property investment slumped 17.2 per cent. Fixed-asset investment fell 3.8 per cent, the first annual drop since records began in 1996, while private investment declined 6.4 per cent.

The National Bureau of Statistics described growth as "hard-won," citing strong supply but weak demand. Factory owners said the downturn in real estate and infrastructure has hit related industries, leaving businesses reluctant to expand.

Beijing announced a CNY1 trillion (US(US$144 billion) credit programme for private firms, but analysts said demand-side support remains insufficient. Welfare increases and subsidies have been extended, yet China's population fell for a fourth straight year.

A Reuters poll forecasts 2026 growth at 4.5 per cent, below the government's five per cent target. Economists said unless policy shifts decisively towards households and consumption, growth will remain in the low to mid-4 per cent range.