China’s growth slumps to 3-year low despite Trump trade lift
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China’s economy slowed to its weakest pace in three years as Donald Trump’s trade war highlighted the country’s heavy reliance on Western markets. Although the tariffs have since been lifted, major sectors are losing momentum. China is one of the world’s biggest economies, but its gross domestic product softened to about 4.5% in the last quarter of 2025, the slowest in three years. The full-year growth was projected at 5%, matching Beijing’s target. Even at a slower rate, China’s economy delivered results far better than some anticipated at the beginning of 2025. But sluggish growth reveals that China still has spending issues, particularly at home. Those issues make it more difficult for families and businesses to succeed. Growth appears weaker in part because many factories and stores are under pressure due to weak domestic spending, even as sales abroad are strong. That means that while China sells a lot to other countries, people inside the country are not buying as much as previously. Strong exports offset weak consumer activity at home One of the biggest sources of strength for the Chinese economy in 2025 was exports. China set a record trade surplus of nearly $1.2 trillion last year. A trade surplus means the country sold more to other countries than it bought from them. This occurred even though Chinese exports to the United States fell by about 20% due to higher U.S. trade tariffs under President Donald Trump. But China made up for this by selling more to countries such as Africa, Southeast Asia, Europe, and Latin America. Exports have been key to helping China reach its 2025 growth target. But domestic spending did not grow much. Consumers didn’t buy as much in stores, and many businesses didn’t build new factories or houses. Since people are not spending more, the…
Filed under: News - @ January 16, 2026 2:21 am