According to a report by China Daily on February 28…
China’s economy expanded by 5 percent year-on-year in 2025, with gross domestic product surpassing 140 trillion yuan ($20.4 trillion) for the first time, according to data released by the National Bureau of Statistics.
GDP reached 140.19 trillion yuan last year, marking another milestone in the country’s steady expansion during the 14th Five-Year Plan period (2021–25). Gross national income rose 5.1 percent to 139.37 trillion yuan.
Growth Structure: Consumption Leads
The composition of growth offers insight into China’s current economic trajectory.
-
Final consumption contributed 2.6 percentage points to overall GDP growth
-
Gross capital formation contributed 0.8 percentage points
-
Net exports contributed 1.6 percentage points
The data suggest that domestic demand remains the primary growth driver, while external trade continued to provide support amid a complex global environment.
With the economy now exceeding 140 trillion yuan in size, a 5 percent growth rate translates into an incremental expansion of more than 5 trillion yuan — roughly equivalent to the annual output of a mid-sized economy.
Global Context
Among major economies, China’s 5 percent growth rate places it near the top in 2025. Officials estimate that China contributed approximately 30 percent of global economic expansion last year, maintaining its role as a key stabilizing force in the world economy.
China remains the world’s second-largest economy, accounting for roughly one-sixth of global output.
Innovation Momentum Strengthens
Investment in research and development continued to accelerate.
Total R&D expenditure rose 8.1 percent year-on-year to 3.93 trillion yuan, representing 2.8 percent of GDP. Notably, spending on basic research increased 11.1 percent to 277.8 billion yuan, accounting for just over 7 percent of total R&D spending.
The sustained rise in innovation-related investment reflects Beijing’s longer-term strategy of upgrading industrial capacity and improving productivity, particularly in advanced manufacturing and emerging technologies.
Structural Resilience
Over the course of the 14th Five-Year Plan period, China’s GDP successively crossed the 110 trillion, 120 trillion, 130 trillion and now 140 trillion yuan thresholds — underscoring the steady expansion of its economic base despite global headwinds.
As China moves into the next planning cycle (2026–30), investors will likely focus on three areas:
-
The durability of consumption-led growth
-
The pace of industrial upgrading and technology self-reliance
-
The sustainability of export performance amid evolving global trade dynamics
While growth has moderated compared with earlier decades, the scale effect of the economy means incremental gains remain substantial, reinforcing China’s role in global supply chains and demand creation.