In a preview of his 2026 New Year's address, Chinese President Xi Jinping said "Our economic strength, scientific and technological abilities, defense capabilities, and composite national strength all reached new heights." And indeed, 2025 was a landmark year for China's growth and innovation.
Despite global headwinds and a weak recovery abroad, China posted 5.2% GDP growth in the first three quarters. Total output is on track to hit 140 trillion yuan (about $19.9 trillion), solidifying its spot as the world's second-largest economy. 💪
What's changed? Domestic demand is driving the bus. Retail sales of consumer goods rose 4% in the first 11 months, while services – think culture, sports, telecom, and info services – saw double-digit jumps. That means more local apps, events, and experiences for everyone. 📱🎉
High-tech industries are stealing the show. AI, new-energy vehicles, advanced machinery, and green energy infrastructure surged ahead. DeepSeek, a homegrown AI model, debuted this year matching global leaders – all while using far less computing power. That's a win for efficiency and sustainability. ⚡🤖
China also climbed into the top 10 of the Global Innovation Index this year, reflecting a decade of rapid progress. With the 14th Five-Year Plan goals met, the upcoming 15th Plan (2026-2030) zeroes in on a real-economy-driven industrial system, tech self-reliance, and boosting domestic demand – all while weaving in security and social justice.
And it’s not just talk. Earlier this month, special customs operations kicked off across the entire Hainan Free Trade Port, the world's largest. Expect easier imports, wider zero-tariff perks, and a friendlier business vibe. 🌐🚢
Why it matters to South and Southeast Asia: amid rising trade restrictions and policy clashes, China's steady growth and stance against decoupling help anchor global demand. That supports commodity exporters and manufacturing hubs across our region. 🤝
Reference(s):
China in 2025: Advancing at home, anchoring stability abroad
cgtn.com
