5.3 percent proves China's economic resilience against headwinds

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China's 5.3 percent GDP growth in the first half of 2025, as reported by the National Bureau of Statistics (NBS) on Tuesday, signals a notable demonstration of economic resilience amid a complex global environment.

Against protectionist headwinds, China's total value of imports and exports witnessed an increase of 2.9 percent year on year over the past six months, with exports surging by 7.2 percent. This growth, which occurred despite tariff hikes and geopolitical frictions, illustrates the adaptability of the Chinese economy.

A key factor behind such resilience is China's diversification of export markets. While China's exports to the world's largest economy are falling as a result of Washington's tariff fights, the country is offsetting this decline by expanding trade ties with other partners. Its trade value with over 190 countries and regions continues to grow during the January-June period. The number of trade partners with a trade volume exceeding 50 billion yuan (around $6.9 billion) reached 61, five more than the same period last year, according to the General Administration of Customs (GAC).

A view of the Longtan Container Terminal of Nanjing Port in Nanjing, Jiangsu Province. [Photo/Xinhua]

China's trade with Belt and Road partners, ASEAN countries, the European Union, and African nations grew by 4.7 percent, 9.6 percent, 3.5 percent, and 14.4 percent, respectively, in the first half of the year. This diversification reduces China's dependence on any single market and mitigates risks from protectionist measures by certain Western economies.

Moreover, China has accelerated the upgrade of its export products, with a focus on high-tech and value-added goods. High-tech product exports, according to the GAC, grew by 9.2 percent year-on-year in the past six months, reflecting the country's pivot toward innovation-driven trade. The NBS data shows that China's exports of mechanical and electrical products rose 9.5 percent, accounting for 60 percent of the total value of exports. This shift not only enhances China's competitiveness but also helps insulate its export sector from tariff pressures that often target lower-end manufactured goods.

China has also pursued supply chain realignment and import diversification to reduce vulnerabilities. The declining imports from the U.S., especially for semiconductors and critical components, reflect the country's efforts to reduce its reliance on American suppliers. China is compensating through increased domestic production and sourcing from alternative countries, which helps strengthen its supply chain resilience.

The resilience of the Chinese economy is also evident in its industrial production and manufacturing sectors. According to the NBS, the production of 3D printing devices, new energy vehicles, and industrial robots grew by 43.1 percent, 36.2 percent and 35.6 percent year-over-year, respectively. These sectors are critical for China's long-term economic transformation towards innovation-driven growth and higher value-added production. The surge in high-tech manufacturing by 9.5 percent in the first half further confirms this shift, which not only supports GDP growth but also enhances China's competitiveness in global markets.

China's policy environment has also been instrumental in underpinning the country's economic resilience. The government has implemented proactive fiscal policies, steady monetary easing, interest rate cuts, and consumer subsidy schemes to stimulate both supply and demand. These measures have helped stabilize employment, business expectations, and market confidence despite external uncertainties and domestic structural challenges.

Against headwinds, China's ability to maintain a steady 5.3 percent GDP growth rate in the first half of 2025, driven by strong exports and supported by balanced domestic demand and effective policies, illustrates a robust economic foundation. This performance boosts investor confidence and positions China well to navigate the remainder of the year.