China hits 2025 GDP growth target on export boom, but can’t shake domestic chill

China's economy grew 5% in 2025, meeting its GDP target due to an export boom, despite weak domestic consumption. The trade surplus reached a record $1.2 trillion, but domestic sectors struggled, with industrial output rising 5.9% while retail sales grew only 3.7%. Analysts warn that reliance on exports is unsustainable, predicting slower growth ahead unless consumer spending is prioritized. Fixed-asset investment fell for the first time since 1996, and private investment also declined. The central bank announced measures to support small businesses, but demand remains a concern, with growth expected to slow to 4.5% in 2026.