China's Economic Resilience Faces Challenges Amid Growth Slowdown

China's economic growth hit a three-year low in Q4 2025 due to weakened domestic demand and property crisis. While the full-year growth met targets, trade tensions and structural issues present challenges. Policymakers aim to boost household consumption to support future economic growth.

China's economy recorded its slowest growth in three years during the fourth quarter as domestic demand weakened, despite meeting the government's annual target. The National Bureau of Statistics reported a year-on-year growth of 4.5% for the quarter, down from 4.8% in the previous quarter.

Analysts had predicted 4.4% growth, but the actual results showed resilience bolstered by successful diversification of export markets beyond the U.S. A record trade surplus highlights dependency on external demand, exposing vulnerabilities amid persistent property issues and subdued domestic spending.

Looking ahead, China's central bank has enacted measures to stimulate the economy, while political leaders aim to increase household consumption to foster stable growth. However, the economic landscape remains shadowed by global trade uncertainties and the need for structural adjustments.

(With inputs from agencies.)