China’s economy grew 5.0% last year, fueled by record global demand for goods, offsetting weak domestic consumption. Beijing’s focus on exports resulted in a $1.2 trillion trade surplus, with shipments diversifying to new markets to counter U.S. tariffs. However, domestic sectors struggle, with property investment down 17.2%.

The success of China’s export-oriented manufacturers contrasts with weak domestic sectors, like retail and property. Analysts warn of slowing growth unless Beijing redirects resources towards consumers. China’s 2026 growth is predicted at 4.5%, with reliance on exports unsustainable due to potential protectionist backlash.

China’s economy grew 4.5% in Q4, beating expectations but slowing from the previous quarter. Fixed-asset investment shrank for the first time in 2025, reflecting pressure on local governments to reduce debt. Private investment fell 6.4%, impacting businesses like Scott Yang’s valve factory in eastern China.

Beijing faces pressure to stimulate demand amid weak domestic consumption. The central bank announced a $144 billion package to aid private enterprises, but analysts note demand is the missing piece. Policies include small increases in pensions and subsidies, but analysts warn of low growth without a focus on consumption.

Amid China’s economic challenges, individuals like Carol Zhang feel the impact. Zhang, who transitioned to e-commerce after losing a tech job, remains cautiously optimistic about the economy. She adjusts her spending habits, now opting for cheaper purchases. Analysts urge a shift towards household support to boost growth.

Read more at Yahoo Finance: China hits 2025 GDP growth target on export boom, but can’t shake domestic chill