Xi Says China Heading Toward 5% Growth in 2025

The Chinese economy grew by 5% in 2025, the same pace as last year and meeting the government’s target. Growth was supported by strong exports, as companies diversified shipments to Europe and Latin America to offset weak domestic consumption and US tariffs. Total goods trade reached RMB 45.47 trillion, with exports up 6.1% and imports 0.5%. Private firms accounted for 57.3% of trade. The primary sector expanded 3.9%, the secondary sector 4.5%, while the services sector led growth at 5.4%, with IT & software (+11.1%) and leasing & business services (+10.3%) performing particularly strongly. Industrial value-added rose 5.9%, driven by equipment (+9.2%) and high-tech manufacturing (+9.4%). Retail sales grew 3.7% (online +8.6%), but fixed-asset investment fell 3.8% amid overcapacity and cautious household spending. Analysts expect growth of around 5% in 2026, though weak domestic demand could constrain upside.

President Xi Jinping said China’s economy is on track to meet its 2025 growth target, with gross domestic product expected to expand by about 5% this year, according to Xinhua News. Speaking at the annual meeting of the Chinese People’s Political Consultative Conference, the top leader emphasized resilience despite external pressures: “China’s economy is forging ahead under pressure, moving toward innovation and quality, demonstrating strong resilience and vitality. The growth rate is expected to reach around 5%, continuing to rank high among the world’s major economies.” Xi added that Beijing will adopt more proactive macroeconomic policies in 2026 to sustain momentum, underscoring the government’s focus on innovation-driven growth and stability amid global uncertainties.

Beijing unveiled early investment plans for 2026, signaling a renewed push to bolster China's economic growth through infrastructure spending. The National Development and Reform Commission (NDRC) announced on Wednesday two major construction projects backed by about CNY 295 billion in central budget funding, alongside approvals for several large-scale initiatives, including Guangzhou’s new airport, water resource facilities, and scientific research platforms, with total planned investment exceeding CNY 400 billion. The early rollout underscores the government's intent to front-load investment to sustain momentum amid persistent economic headwinds. Already in 2025, China allocated CNY 800 billion to its “Two Major” programmes, prioritizing national projects and security-related capacity building. Together, these measures highlight Beijing’s strategy to stabilize growth while reinforcing infrastructure, energy, and resource security.