China's Economic Challenges: Balancing Growth Amid Global Tensions

China's economic growth has slowed to a three-year low amid soft domestic demand, with full-year expansion meeting Beijing's target. Despite resilience from tariff diversifications, challenges include a prolonged property slump and global trade tensions, prompting fiscal policies to support household consumption and maintain a proactive economy.

China's economic landscape in 2025 presents a complex scenario, marked by a slowdown to a three-year low in the fourth quarter as domestic demand weakens. While the nation succeeded in reaching its annual growth target, trade tensions and long-standing structural issues continue to pose significant threats.

The National Bureau of Statistics reported a fourth-quarter growth of 4.5% year-on-year, a dip from 4.8% in the preceding quarter, with consumption and investment sectors showing signs of drag. Despite better-than-expected export diversification, reliance on external demand highlights the vulnerabilities amid ongoing property market woes and deflationary pressures.

Looking forward, China's economic forecast is clouded by global trade protectionism and unpredictable U.S. economic policies. In response, Chinese leaders are committed to sustaining a proactive fiscal policy and boosting household consumption, though challenges such as falling property values and inadequate social safety nets remain.

(With inputs from agencies.)