China's Economic Balancing Act: Navigating Growth Amidst Global Challenges

China's economic growth is showing signs of slowing, with forecasts predicting the weakest pace in years. Despite resilience in exports, structural vulnerabilities and global trade tensions are key concerns. Policymakers are urged to stimulate domestic consumption and address economic imbalances to ensure long-term stability.

China's economy, the world's second-largest, is experiencing a slowdown, with growth expected to drop to its lowest in three years. A Reuters poll forecasts GDP growth at 4.4% for the fourth quarter of 2025, a decline from the previous quarter.

Despite achieving a record $1.2 trillion trade surplus in 2025, mainly from exports to non-U.S. markets, China's economic dependencies on foreign demand highlight inherent vulnerabilities. Domestic consumption is faltering amid a persistent property slump and deflationary pressures.

The forthcoming GDP data, set to release on Monday, will shed light on the challenges Beijing faces, including rising global trade protectionism and the unpredictability of U.S. economic policies. Structural issues remain a priority as policymakers consider stimulus measures to support growth.

(With inputs from agencies.)