On January 19, the State Council Information Office held a press conference to introduce the performance of the national economy in 2025. Kang Yi, Commissioner of the National Bureau of Statistics, announced that based on preliminary calculations, China's gross domestic product (GDP) for the full year 2025 reached 140.1879 trillion yuan, representing a year-on-year growth of 5.0 percent calculated at constant prices. This marks the first time China's GDP has surpassed the 140 trillion yuan threshold, reaching a new historic level.
The reporter noted that China implemented a series of more proactive and impactful macro policies in 2025, including support for "dual-key" projects and programs for replacing consumer goods and equipment. How effective were these macro policies, and what role did they play in promoting steady and healthy economic development? In response to this question from the Daily Economic News, Kang Yi stated that in 2025, the consumer goods trade-in policy facilitated the entry of more high-quality, durable goods into households, with high-efficiency appliances and smart home devices being particularly favored by consumers. In the replacement of digital products, mid-to-high-end models accounted for a significant proportion. By the end of 2025, the number of passenger vehicles per 100 households in China reached 52.9, an increase of 1.7 vehicles from the end of the previous year.
Kang Yi further informed the Daily Economic News that in 2025, all regions and departments intensified the implementation of more proactive and effective macro policies, efficiently executed existing policies, and vigorously introduced new incremental measures. They focused on stabilizing employment, enterprises, markets, and expectations, effectively ensuring stable and improving economic operations, thereby providing solid support for achieving the year's main socioeconomic development goals and tasks. This is specifically reflected in four areas.
First, it promoted stable economic performance. In 2025, China strengthened and improved macroeconomic regulation, introduced measures to stabilize employment and the economy while promoting high-quality development, and coordinated the use of ultra-long-term special government bonds, local government special bonds, and central budget investments. Efforts were intensified to expand and implement policies for "new consumption and new scenarios," increase the development of "dual-key" projects, and leverage the role of new policy-based financial instruments, effectively countering downward economic pressure and ensuring the smooth achievement of annual targets. The retail sales value of six categories of goods related to the trade-in program increased by 4.1 percent year-on-year for the full year, accelerating by 2.0 percentage points from the previous year, contributing to a 0.6 percentage point growth in total retail sales of consumer goods; investment in equipment and tool purchases grew by 11.8 percent, driving overall investment growth by 1.8 percentage points.
Second, it promoted structural optimization and upgrading. While fostering stable economic growth, macro policies placed greater emphasis on steering development towards high quality. In 2025, nine departments specifically issued the "Several Policy Measures on Expanding Service Consumption" to more vigorously boost service consumption and unleash its potential. Service retail sales grew by 5.5 percent year-on-year in 2025. Since September, the cumulative growth rate of service retail sales has increased for four consecutive months. The consumer goods trade-in policy facilitated the entry of more high-quality, durable goods into households, with high-efficiency appliances and smart home devices being particularly favored by consumers. In the replacement of digital products, mid-to-high-end models accounted for a significant proportion. By the end of 2025, the number of passenger vehicles per 100 households in China reached 52.9, an increase of 1.7 vehicles from the end of the previous year. The large-scale equipment renewal policy accelerated the pace of industrial upgrading, driving rapid output growth in related sectors. In 2025, the value-added of the equipment manufacturing industry (above designated size) increased by 9.2 percent year-on-year, accelerating by 1.5 percentage points from the previous year, with its proportion rising to 36.8 percent.
Furthermore, it fostered and strengthened new drivers of development. The deep integration of technological innovation and industrial innovation, coupled with the intensified advancement of the "AI Plus" initiative, accelerated industrial innovation development and application of results. The cultivation and growth of emerging and future industries injected a vital source of dynamism into stable economic growth. In 2025, the value-added of the intelligent unmanned aerial vehicle manufacturing and intelligent vehicle equipment manufacturing industries (above designated size) grew by 57 percent and 26.2 percent, respectively, while the integrated circuit manufacturing and optoelectronic device manufacturing industries grew by 26.7 percent and 18.8 percent, respectively. An increasing number of Chinese companies are appearing in new fields such as large AI models, quantum technology, and embodied AI.
Finally, it contributed to the improvement of economic circulation. The纵深推进 (deepened advancement) of building a unified national market and the optimization of market competition order provided favorable conditions for a reasonable rebound in prices and improved corporate profitability. In December 2025, the core Consumer Price Index (CPI) increased by 1.2 percent year-on-year, the decline in the Producer Price Index for Industrial Products (PPI) narrowed, and the Manufacturing Purchasing Managers' Index (PMI) rose to 50.1 percent. From January to November, profits of manufacturing enterprises above designated size increased by 5.0 percent, compared to a decline of 4.6 percent in the same period the previous year.
With China's economy performing well in 2025, will it be challenging to maintain a positive growth rate in the first quarter of 2026? What further measures will be taken to address challenges, particularly concerning consumption and investment? In this regard, Kang Yi pointed out that in 2025, China's economy advanced under pressure, developing towards innovation and quality, successfully achieving the main expected targets, demonstrating strong resilience and vitality, and laying a solid foundation for economic development this year. Recent indicators show positive changes in production, prices, and expectations, with the trend of stability and progress continuing. In December 2025, the year-on-year growth rates of value-added industrial output and the service industry production index (both above designated size) accelerated compared to November. The CPI rose by 0.8 percent, the highest increase since March 2023, while the core CPI has maintained a growth rate above 1 percent for four consecutive months. The year-on-year decline in the PPI narrowed, and it increased month-on-month for three consecutive months; both the Manufacturing PMI and the Non-Manufacturing Business Activity Index returned to expansion territory. In terms of policy support, the State Council executive meeting has deployed a package of policies involving fiscal and financial coordination to boost domestic demand, and relevant departments are accelerating implementation to promote the expansion of domestic demand. Policies for "new consumption and new scenarios" are continuously being optimized, with the first batch of funds already allocated in advance, creating favorable conditions for the start of the year's economy.
"Looking at the whole year of 2026, the supporting conditions and fundamental trends for China's long-term economic improvement remain unchanged, and the general trend of high-quality economic development remains unchanged. There is a foundation and conditions to maintain stable and improving economic operations," Kang Yi said.
Kang Yi further revealed that in 2025, the contribution rates of final consumption expenditure, capital formation, and net exports of goods and services to economic growth were 52.0 percent, 15.3 percent, and 32.7 percent, respectively. In the fourth quarter, the contribution rates were 52.9 percent, 16.0 percent, and 31.1 percent, respectively.
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