China's Economy Surpasses $20 Trillion Amid Export Reliance and Domestic Challenges

China's economy reached $20.01 trillion in 2025, driven by robust exports despite domestic consumption challenges and US tariffs. Growth slowed to 4.5% in the last quarter, highlighting a two-speed economy with strong export performance and weak consumer spending. Analysts question growth figures amid concerns over sustainability.

China's economy achieved a notable milestone in 2025, reaching a record $20.01 trillion, propelled primarily by strong export activities despite challenges in domestic consumption and the impact of US tariffs, official data suggested on Monday.

The National Bureau of Statistics reported a 5% GDP growth year on year, aligning with the annual target but facing skepticism from economists over the accuracy of these figures. The last quarter saw a slower 4.5% growth, marked as the lowest since 2022 due to significant domestic hurdles.

Observers noted a divergence in the economic landscape, with exports serving as the main growth catalyst, while real estate struggles and cautious consumer spending persisted. Analysts remain wary of overly optimistic growth projections, citing sustainability concerns in a climate of external pressures and internal demand constraints.