Despite a turbulent geopolitical landscape and significant domestic headwinds, China’s economy successfully navigated 2025 to meet its official growth target. While the headlines celebrate this achievement, experts caution that deep-seated structural challenges are far from resolved and continue to cast a long shadow over the future.

Official data, released on Monday, revealed that the Chinese economy expanded by a robust 5% last year. This figure not only held steady from the previous year but also precisely hit the government’s ambitious goal of “around 5%.” For many, this offers a moment of relief, demonstrating resilience in the face of adversity.

However, beneath this impressive headline growth lies a complex web of ongoing issues. The looming threat of renewed trade aggression, particularly from figures like Donald Trump, continues to inject uncertainty into global markets. Domestically, the slow-motion crisis in the housing market persists, raising concerns about financial stability and consumer confidence. Furthermore, a cautious consumer base remains a major hurdle for the world’s second-largest economy, hindering vital domestic demand.

As experts highlight, while hitting growth goals is commendable, these deeper “structural challenges at home are not going away.” The path forward for China will require more than just meeting targets; it will demand strategic reforms and robust policies to address these fundamental issues and ensure long-term stability.

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