China's GDP grew five percent year on year in 2025, meeting the annual target of around five percent, official data showed on January 19.

The economy reached 140.1879 trillion RMB, data released by the National Bureau of Statistics (NBS) revealed.

Facing abrupt changes in the external environment and mounting domestic difficulties and challenges, China adopted more proactive and effective macro policies, which helped offset adverse external shocks and stabilize the foundation for development amid headwinds, Kang Yi, head of the NBS, said.

The country defied expectations as it found alternative markets for its products and U.S. tariffs proved less punitive than originally threatened, observed The Guardian.

China's economy is looking resilient, with strong exports and breakthroughs in AI and other advanced technologies, according to AP.

Analysts pointed to export expansion, diversified trade ties, and strategic infrastructure spending as key drivers that helped the country achieve its target.

"The description of China's economic growth performance in 2025, in one word, is resilience," Sandile Swana, a South African governance and political analyst, said.

John Bryson, expert in economic geography and professor at the University of Birmingham, said that some commentators might be surprised with this outcome given that it occurred during Donald Trump's tariff war. However, this five percent demonstrates that Chinese politicians, policymakers and companies were able to adjust.

Global financial institutions have also weighed in. Major investment banks — including Goldman Sachs, Deutsche Bank and Morgan Stanley — lifted their growth expectations for China and expressed renewed optimism about the outlook.

China's exports were resilient in 2025 despite higher U.S. tariffs. That's partly due to a robust increase in exports to emerging market economies, according to Goldman Sachs.

The Commonwealth Bank of Australia's chief economist, Luke Yeaman, said navigating a fraught geopolitical landscape remains a "major wildcard," but China's economy should continue to grow through 2026.

The International Monetary Fund upgraded its projections for China's growth to five percent in 2025 and 4.5 percent in 2026, up by 0.2 and 0.3 percentage points from its October projection, respectively, according to its latest World Economic Outlook report.