China’s Economic Slowdown Hits Three-Year Low Amid Domestic Weakness
China's economy expanded just 4.5% in Q4 2025, marking its weakest growth since 2022 despite record trade surpluses. The $1.2 trillion trade surplus failed to offset declining domestic consumption and stagnant private investment.
Export markets showed divergent trends—shipments to the US plunged 19.5% while global demand expanded. Beijing's 5% annual growth target was met through statistical carryover rather than organic momentum, with retail, property, and manufacturing sectors all reporting contraction.
The tariff rollback that was expected to boost growth instead revealed structural vulnerabilities. Households curtailed spending amid wage stagnation and deflationary pressures, while businesses withheld capital from real estate and infrastructure projects.
