CHINA’S economy expanded at a rapid 5 per cent in 2025, buoyed by strong exports despite US President Donald Trump’s tariffs.

However, growth in the world’s second-largest economy slowed slightly to 4.5 per cent in the last quarter of the year, the government said today.

In contrast, the GDP of the world’s largest economy, the US, is forecast to reach 2.5 per cent in 2026 (fourth quarter, year over year).

As expected, annual growth last year was in line with the government’s official target for an expansion of “about 5 per cent.”

Strong exports helped to compensate for weak consumer spending and business investment, contributing to a record trade surplus of $1.2 trillion (£900 billion).

Chinese shipments to the world offset the difficulties caused by the raised tariffs imposed by President Trump. China’s exports to the US fell by 20 per cent while its exports to the European Union and the Association of South-east Asian Nations rose 12 per cent and 11 per cent, respectively, in December.

China and the US agreed last October to roll back a series of export control measures and higher tariffs in a one-year trade truce following a meeting between Chinese President Xi Jinping and his US counterpart.

Meanwhile, imports from the European nations expanded 18 per cent and fell 5 per cent from south-east Asian countries.

Kang Yi, the head of China’s Bureau of Statistics, said today that the country’s economy “faces problems and challenges including strong supply and weak demand,” but said that China’s economy had sustained “steady progress in 2025 despite multiple pressures” and has “solid foundations” in countering risks.

China’s leaders have repeatedly highlighted boosting domestic demand as a policy focus.

A trade-in programme for drivers to replace older cars with more energy-efficient models, for example, has been put in place to help spark demand.