As Chinese Vice Premier He Lifeng prepares for critical economic talks with U.S. counterparts in Sweden this month, new data reveals how China continues to defy global headwinds. The world's second-largest economy grew 5.3% year-on-year in the first half of 2025 – outpacing expectations through strategic domestic reforms and international partnerships.
Domestic consumption has emerged as the economy's backbone, driving 68.8% of GDP growth. Innovative programs like consumer goods trade-ins generated $153.1 billion in sales during 2025's first five months alone, fueling a 5% annual increase in retail sales. This homegrown momentum has cushioned the impact of external pressures while creating self-sustaining growth cycles.
China's trade diversification strategy is paying dividends. While Western tariffs created challenges, trade with Belt and Road partners surged 4.7%, with ASEAN nations up 9.6% and African countries jumping 14.4%. This multi-polar trade approach reduces reliance on individual markets while strengthening global supply chains.
High-tech manufacturing and service industries remain bright spots, attracting sustained foreign investment. A U.S.-China Business Council report shows 82% of American firms in China remained profitable in 2024, underscoring the market's enduring appeal despite tariff concerns.
As Beijing and Washington prepare for negotiations, analysts highlight China's dual-track approach: fostering internal innovation while deepening international cooperation. With quality growth initiatives and steady market opening, China continues offering stability in an uncertain global economy – proving resilience through adaptation remains its strongest currency.
