Against a backdrop of an intensifying trade war and rising geopolitical tensions, China’s economy is not just holding steady, but has gained ground, according to data released by the National Bureau of Statistics on July 15. Largely buoyed by robust consumption, exports to emerging markets and rapid technological innovation, China’s GDP reached 66.05 trillion yuan (US$9.2t) in the first half of 2025, a year-on-year increase of 5.3 percent, exceeding the 5 percent annual growth target set by the Chinese government.
Data shows that domestic consumption has emerged as the primary driving force of China’s economic growth, contributing to 52 percent of GDP growth in the first half of the year. Retail sales rose 5 percent year-on-year to 24.55 trillion yuan (US$3.42t), with a 5.4 percent increase in the second quarter, indicating accelerating growth in consumers’ confidence from the first quarter. Of particular note are the tourism and cultural sectors, which are becoming new growth engines, as sports, entertainment, transport and holiday spending all achieved double-digit growth.
China’s annual per capita GDP surpassed US$13,000 in 2024, yet spending on cultural and service-related consumption remains relatively low compared to countries with similar income levels. As Chinese consumers increasingly shift from basic needs to quality-of-life improvements, service consumption is set to become a key driver of the country’s next phase of economic growth.
Beyond consumption, China’s export sector recorded strong growth in the first half of 2025, defying rising US tariffs. Total exports exceeded 13 trillion yuan (US$1.8t), a record high for the period and a 7.2 percent year-on-year increase. While exports to the US fell sharply by 9.9 percent in line with expectations, exports to major traditional markets such as Japan, South Korea and the EU continued to grow. The biggest surprises came from emerging markets, as exports to Africa rose by 14.4 percent, to Central Asia by 13.8 percent and to ASEAN countries, China’s largest trading partner, by 14.3 percent.
Another major highlight is the rapid expansion of the high-tech manufacturing sector. Value-added output in equipment manufacturing and high-tech manufacturing rose by 10.2 percent and 9.5 percent year-on-year, well above the 6.8 percent growth recorded across all industrial enterprises.
In terms of products, output of 3D printing devices surged by 43.1 percent, while new energy vehicles and industrial robots saw increases of 36.2 percent and 35.6 percent, highlighting the sector’s strong momentum.
This trend is also evident in trade figures. China’s exports of high-tech products rose 9.2 percent, marking nine consecutive months of growth. Exports of industrial robots alone jumped 61.5 percent, while highend machine tools, ships, offshore engineering equipment, lithium batteries and wind turbines all recorded growth rates exceeding 20 percent.
These gains have significantly strengthened China’s role in the global manufacturing and equipment supply chain, suggesting that the country’s push to upgrade its industrial base is making solid progress.
As countries around the world brace for intensified trade tensions, China’s economic growth has demonstrated remarkable resilience, outpacing that of most major economies. With domestic demand on the rise, export markets becoming more diverse and technology driving industrial transformation, China continues to serve as a key pillar of global economic stability.
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