China meets 2025 growth target as export boom offsets weak domestic demand

China's economy grew 5.0% in 2025, meeting the government's target, driven by a surge in exports while domestic consumption remained weak.

China's economy grew 5.0% in 2025, meeting the government's growth target by leaning on a strong export performance while domestic demand stayed weak. Since the property sector crash in 2021, Beijing has steered resources toward industry rather than consumers, contributing to production overcapacity and pushing factories to seek buyers overseas. Shipments to the United States fell, but exports to other regions grew, helping sustain output. The surge in overseas sales coincided with a record trade surplus. Key facts: - GDP grew 5.0% in 2025, meeting the official target. - Trade surplus reached $1.2 trillion, about 20% higher than in 2024. - Industrial output rose 5.9%, retail sales rose 3.7%, and property investment fell 17.2%. - Shipments to the United States fell by about one fifth while exports to Europe and Latin America expanded. Summary: The export-led recovery helped China hit its 2025 target but left consumer-facing sectors under pressure, according to the report. Chinese authorities are expected to set a similar roughly 5% growth target for 2026, while a Reuters poll projected growth nearer 4.5%. Analysts cautioned that relying on export expansion at the same pace long term would be difficult to sustain.