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HomeWorldChina’s Economy Expands 5% in 2025 as Export Boom Offsets Trump Tariffs

China’s Economy Expands 5% in 2025 as Export Boom Offsets Trump Tariffs

The world’s second-largest economy expanded at an annual rate of 4.8% in the previous quarter.

China’s economy recorded a solid 5% growth in 2025, supported by strong export performance despite renewed trade pressure from former US President Donald Trump’s tariff policies.

According to official data, China’s export sector remained resilient throughout the year, helping the country maintain steady economic momentum even as global trade tensions resurfaced. Manufacturing, technology goods, and electric vehicle shipments led the surge, with strong demand from Asia, Europe, and emerging markets.

Exports Drive Economic Stability

China’s factories continued operating at high capacity, benefiting from rising overseas orders for electronics, renewable energy equipment, electric vehicles, and industrial machinery. Export growth helped offset weakness in domestic real estate and consumer spending.

Trade analysts say Chinese exporters adapted quickly by diversifying supply chains, finding new markets, and improving cost efficiency — allowing them to remain competitive despite higher US tariffs.

Trump Tariffs Fail to Slow Momentum

Donald Trump’s return to aggressive trade policies, including fresh tariffs on Chinese imports, had limited impact on China’s overall growth. While shipments to the US slowed, exports to Southeast Asia, the Middle East, Africa, and Latin America surged.

China also strengthened trade partnerships under the Belt and Road Initiative, reducing reliance on Western markets.

Government Support Boosts Confidence

Beijing rolled out targeted stimulus measures, including tax relief for exporters, infrastructure spending, and support for high-tech manufacturing. These policies helped stabilize employment and maintain industrial output.

The central bank also maintained flexible monetary policies to ensure liquidity for businesses and exporters.

Outlook for 2026

Economists expect China’s growth to remain stable in 2026, driven by advanced manufacturing, green energy, artificial intelligence, and electric vehicle production. However, risks remain from geopolitical tensions, weak global demand, and ongoing trade disputes with the US.

Still, China’s strong export engine continues to act as a powerful shield against external shocks.

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