China's economy expanded 5% in 2025, matching official targets despite weakening momentum in recent months. Export growth helped offset domestic challenges and soften impacts from ongoing US trade tensions.

The trade war with the US under Donald Trump initially pressured Chinese manufacturers. Beijing responded by diversifying export markets and strengthening trade ties with Asian and European partners.

Economic policymakers now face renewed pressure to sustain growth through domestic consumption and technological innovation. Future reforms may focus on reducing reliance on external demand.

Analysts expect Beijing to maintain cautious monetary policies while advancing supply-side structural changes. The 5% growth rate signals resilience but masks underlying vulnerabilities in key sectors.