China’s Economy Grows 5% in 2025 Amid Strong Exports Despite Trump Tariffs

China’s economy expanded by 5% in 2025, according to preliminary data released January 19, 2026, driven by resilient export performance despite U.S. tariffs under former President Donald Trump’s trade policies. The growth rate exceeded market expectations and marks a significant rebound from 2024’s 4.3% expansion, fueled by increased demand for electronics, electric vehicles, and machinery in global markets. The People’s Bank of China reported that exports rose 8.7% year-on-year in 2025, with shipments to Southeast Asia, the EU, and Latin America offsetting reduced U.S. purchases. Meanwhile, domestic consumption grew modestly at 3.2%, reflecting ongoing consumer caution. Analysts note that Beijing’s targeted stimulus measures, including infrastructure spending and credit easing, helped sustain momentum. The Shanghai Composite Index rose 2.1% on the news, while the yuan strengthened against the dollar, trading at 7.25 per USD as of January 19, 2026.