China Defies Tariffs and Pandemic with Robust Export-Driven Growth

China's economy grew at a 5% annual pace in 2025, spurred by strong exports despite previous tariffs. Growth slowed to 4.5% in the last quarter, the lowest since 2022. The economy was bolstered by a record USD 1.2 trillion trade surplus, balancing weak consumer spending and investment.

In 2025, China's economy marked a notable 5% annual growth, largely due to strong export performance, even in the face of tariffs introduced by former U.S. President Trump.

Despite this robust annual growth, the government reported on Monday a slowdown to 4.5% in the fourth quarter—a pace not seen since the challenging days of late 2022 amid the COVID-19 pandemic.

China's leadership has been working to ignite faster economic growth amid a sluggish property market and pandemic-induced disruptions. The nation's record USD 1.2 trillion trade surplus managed to offset domestic challenges like subdued consumer spending and business investment.