China’s economy hit growth goal last year despite Trump trade war and property crisis

The Guardian - World NewsEN 2 min read 100% complete by Patrick Commins and agenciesJanuary 19, 2026 at 07:26 AM

AI Summary

medium article 2 min

China's economy grew by 5% in 2025, meeting its official target despite challenges like trade tensions and a property crisis. While experts anticipated a negative impact from US tariffs, China achieved a record trade surplus by finding alternative markets. However, a four-year housing market decline, with prices down over 20% since 2021, has dampened consumer confidence and raised debt concerns. Deflation remains a concern, with consumer prices rising only 0.8% in 2025. Despite officials projecting continued growth, the December quarter saw a slowdown, and some analysts suggest official growth figures may be inflated. The economy is described as "K-shaped," with strong exports contrasting with weak retail sales.

Key Entities & Roles

Key Player Opposition Context

Japan 30% Capital Economics 30% Kang Yi 40% Citi 40% Commonwealth Bank of Australia 50% Luke Yeaman ×360% United States 60% Donald Trump 70% China ×790%

Keywords

economic growth 90% property crisis 80% trade war 70% housing market 70% economic challenges 60% consumer confidence 60% trade surplus 60% official statistics 50% deflation 50%