China's 2025 economic report was released on the 19th. A closer look at this report card reveals two particularly robust breakthroughs. First, the GDP surpassed the 140 trillion yuan milestone. According to data from the National Bureau of Statistics, the preliminary accounting shows the annual gross domestic product reached 140,187.9 billion yuan, representing a 5.0% growth over the previous year calculated at constant prices. The 5% growth rate continues to rank among the top performers of major global economies, with the incremental growth equivalent to the total output of a medium-sized economy. Extending the timeline, during the "14th Five-Year Plan" period, China's total economic output achieved "four consecutive leaps," successively surpassing new thresholds of 110 trillion, 120 trillion, 130 trillion, and 140 trillion yuan. Luo Zhiheng, Chief Economist and President of the Research Institute at Yuekai Securities, told Sanlihe that the 140 trillion yuan economic scale is not only an achievement of the Chinese economy but, more importantly, provides the confidence to tackle future risks and challenges and to sustain further growth.
The second breakthrough is that the total retail sales of consumer goods exceeded the 50 trillion yuan mark. The total retail sales of consumer goods for the full year of 2025 reached 50,120.2 billion yuan, an increase of 3.7% compared to the previous year. On average, daily spending exceeded 137.3 billion yuan; what does this figure signify? To put it vividly, if this money were converted into 100-yuan banknotes, the stack would be taller than 15 Mount Everests. Consumption has demonstrated its value as the primary engine of the economy. In 2025, the contribution of final consumption expenditure to economic growth was 52.0%. Specifically, in the fourth quarter, the contribution rate of final consumption expenditure to economic growth was 52.9%. Luo Zhiheng believes that a series of coordinated policies aimed at stabilizing growth and preventing risks, particularly the more systematic measures to boost consumption, along with a macro governance philosophy increasingly focused on expanding domestic demand, have played a key role. Policies such as childcare subsidies, free preschool education, and the "trade-in" program, which provides tangible financial incentives, have reduced household burdens, increased willingness to consume, and driven stable consumption growth.
Beyond these two formidable breakthroughs, the Chinese economy also delivered several "world's first" achievements. For instance, in the automotive sector, both the production and sales of automobiles in China exceeded 34 million units in 2025, setting new historical records and maintaining the top global position for the 17th consecutive year. The production and sales of new energy vehicles both surpassed 16 million units, securing the number one spot globally for the 11th straight year. Underpinning this success is China's continuously rising innovation capability. Data from the World Intellectual Property Organization shows that China's innovation index ranking entered the global top ten for the first time. An increasingly "tech-savvy" China is showing the world a glimpse of the future.
Furthermore, the total value of imports and exports for the year hit a record high, with China maintaining its position as the world's largest trader in goods. Notably, exports grew against the trend by 6.1% despite external pressures. Luo Zhiheng stated that the strong competitiveness of Chinese products, coupled with the diversification of export markets and the upgrading of the export product structure, are key factors behind the sustained high growth rate of exports. This report card represents both confidence and solid foundation, carrying significant global implications. Amid the current weak global economic recovery, China's contribution to world economic growth is estimated to be around 30%. By maintaining its own stability, China provides "certainty" for the world economy, and through its continuous progress, it becomes a "source of confidence" for the global economy. The Wall Street Journal commented that China's strong economic growth in 5 defied expectations that the US-China trade war would weaken the world's second-largest economy.
With the successful conclusion of the "14th Five-Year Plan," this report card serves not only as a summary of the past but also as a starting point for the future. With solid foundations and a clear direction, the next five years of the Chinese economy are highly anticipated.
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