Looking back at 2025, China surprised markets by hitting its 5% growth target despite a soft global economy, tariff uncertainties, and a big domestic shake-up. We caught up with UBS Investment Bank's Senior China Economist Zhang Ning to unpack the drivers behind this resilience.
1. Strong Domestic Demand 💪
Even with global slowdowns, Chinese shoppers kept the engine running. Rising income levels and new retail models—from livestream shopping to digital coupons—kept consumers clicking and buying.
2. Tech and Innovation 🚀
China's push into high-tech sectors like AI, semiconductors, and biotech gave a turbo boost. Local giants and startups alike tapped R&D and digital platforms—think Southeast Asia's super apps or India's UPI payments reshaping services.
3. Green Energy Push 🌱
Investments in electric vehicles, solar farms, and clean tech not only support global climate goals but also created thousands of new jobs, fueling growth in manufacturing and infrastructure.
4. Policy Support and Opening Up 📈
Targeted stimulus, simplified regulations, and steady foreign trade policies helped companies plan for the long haul. China's ongoing structural shift—from heavy industry to services—kept things balanced.
According to Zhang Ning, these combined factors show that the Chinese economy has solid foundations beyond the headline number. For young pros in South and Southeast Asia watching regional markets, the takeaway is clear: diversified drivers—domestic demand, tech innovation, green investments, and smart policy—can build resilience in any fast-moving economy.
Reference(s):
cgtn.com
