China's economy beats expectations in 2025

China's economy outperformed expectations over the year, with growth momentum broadening and key risks easing, a senior official said on Saturday.

Speaking at the China Economic Annual Conference in Beijing, Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, said major economic indicators beat forecasts, employment remained broadly stable and foreign trade posted solid growth. Export diversification continued to improve, while construction of a modern industrial system accelerated.

China's overall economic strength has risen markedly, Han said. The country's yearly gross domestic product surpassed 110 trillion yuan in 2021, 120 trillion yuan in 2022 and 130 trillion yuan in 2024, respectively, and is expected to reach about 140 trillion yuan this year.

New quality productive forces expanded steadily, with China ranking among the global front-runners in the research and application of artificial intelligence, biomedicine and robotics, Han said.

Reform and opening-up also made fresh progress. Authorities pressed ahead with building a unified national market and stepped up efforts to curb disorderly, cut-throat competition. In sectors such as photovoltaics, supply-demand dynamics and price trends showed "positive changes", Han said.

Capital markets became more active, supported by rising confidence among both domestic and overseas investors. China's approach to autonomous opening-up moved forward in an orderly manner, he added.

Risk prevention and resolution in key areas delivered tangible results this year, according to Han. Local governments advanced the structured replacement of hidden debt, while the nationwide task of ensuring the delivery of pre-sold homes was completed in full.

Reforms and risk mitigation at major local financial institutions progressed smoothly, Han said, adding that campaigns to clear overdue payments owed to businesses gained traction, helping stabilize corporate cash flows.

"These efforts ensured that the bottom line of no systemic financial risk was firmly held," Han said.

The annual conference, hosted by China Center for International Economic Exchanges brought together policymakers, economists and business leaders to discuss China's economic performance for 2025 and outlook for 2026.