China's Economic Resilience Masked by Uneven Momentum in 2025

China's economic growth slowed in the fourth quarter of 2025, reaching a three-year low. Despite meeting its annual target, the economy faces challenges from trade tensions and internal structural issues. Analysts express concerns about weak domestic demand and a prolonged property crisis impacting long-term growth prospects.

China's economy exhibited notable resilience in 2025, achieving an annual growth rate of 5.0% that met the official target, despite a significant slowdown in the fourth quarter to 4.5%, according to the National Bureau of Statistics (NBS).

Exporters' diversification efforts and lower-than-anticipated U.S. tariff hikes bolstered China's economic performance. However, concerns are growing over the ongoing property crisis and weakened domestic demand, issues that analysts fear could hinder growth in the coming year.

In December 2025, China's central bank enacted specialized interest rate cuts, and leaders have pledged to enhance household consumption, a crucial step as the economy battles deflationary strains and trade protectionism.

(With inputs from agencies.)