China’s economy grew 5.0% last year, meeting the government’s aim by capturing a record percentage of global goods demand to offset poor domestic consumption, a strategy that mitigated U.S. tariffs but is becoming harder to sustain.

Since its property sector crash in 2021, Beijing has prioritized the industrial complex over consumers to reach ambitious development targets, causing output overcapacity and pressuring industries to export.

China’s trade surplus reached $1.2 trillion last year, 20% larger than in 2024 and similar to a top 20 economy like Saudi Arabia.