As 2025 draws to a close, China reinforces its dual role as a domestic growth engine and international stabilizer, navigating global economic headwinds while advancing technological self-reliance. President Xi Jinping highlighted these achievements in his recent address, emphasizing progress in high-quality development and cross-border cooperation.
Steady Growth Amid Global Uncertainty
With 5.2% GDP growth in the first three quarters and projected annual output of 140 trillion yuan ($19.87 trillion), China remains the world’s second-largest economy. Retail sales rose 4% year-on-year through November, while service sectors like cultural tourism and telecommunications saw double-digit growth. High-tech manufacturing, AI, and green energy infrastructure emerged as key drivers, exemplified by breakthroughs like the energy-efficient DeepSeek AI model.
Innovation-Driven Transition
China’s ascent to the top 10 of the Global Innovation Index reflects its strategic focus on “new quality productive forces.” The upcoming 15th Five-Year Plan (2026–2030) prioritizes a modern industrial system, tech self-reliance, and domestic demand expansion—a blueprint blending economic security with sustainable growth.
Opening Up Amid Protectionism
December’s launch of full customs operations in the Hainan Free Trade Port—the world’s largest such zone—signals China’s commitment to high-level openness. Expanded zero-tariff policies and streamlined imports counter rising global protectionism, offering stability for supply chains and commodity exporters.
As President Xi noted, “Our economic strength reached new heights this year.” With 2025’s milestones setting the stage for next year’s reforms, China continues balancing internal modernization with its role as a global economic anchor.
