China's economy demonstrated remarkable adaptability in 2025 by achieving its 5% growth target despite facing multiple headwinds, according to UBS Investment Bank Senior China Economist Zhang Ning. The accomplishment comes amid a sluggish global economic recovery, ongoing trade tensions, and significant domestic structural reforms reshaping the world's second-largest economy.
Structural Reforms and Domestic Demand
Zhang highlighted the critical role of China's dual circulation strategy in cushioning external shocks. 'The expansion of domestic consumption, particularly in services and high-tech sectors, provided crucial stability,' he told CGTN. This shift helped offset weaker export performance as global demand softened through much of 2025.
Navigating Geopolitical Headwinds
While acknowledging persistent challenges in cross-border trade relations, the economist noted that Chinese manufacturers have shown increasing agility in diversifying supply chains. 'The acceleration in renewable energy investments and EV production capabilities created new growth engines that compensated for traditional sector slowdowns,' Zhang observed.
Looking ahead to 2026, analysts will be watching how China balances its quality-growth agenda with ongoing property market adjustments and local government debt management. The sustained focus on technological self-reliance and green transition initiatives suggests structural reforms will continue shaping economic priorities.
