China's economy grew by 5 percent last year, meeting Beijing's annual growth target despite challenges including a property crisis, weak domestic spending, and trade turmoil stemming from U.S. President Donald Trump's tariff policies, according to official government figures released last week. The data also indicated a slowdown in economic growth to 4.5 percent in the final three months of 2025 compared to the same period the previous year.

The Chinese government had set a growth target of "around 5 percent" for 2025. The nation also reported the world's largest-ever trade surplus last week, driven by record exports.

However, some analysts have expressed skepticism regarding the accuracy of China's official growth figures. Zichun Huang, China Economist at Capital Economics, stated, "The headline gross domestic product print came in at 5 percent for 2025, matching the government's target, we think growth is weaker than official figures suggest." Huang further added that Capital Economics' calculations indicate that China's official growth figures "overstate the pace of economic expansion" by at least 1.5 percentage points.

The achievement of the growth target comes amid a complex economic landscape for China. The country has been grappling with a prolonged property crisis, which has dampened investor confidence and contributed to slower growth. Efforts to stimulate domestic spending have also faced challenges, as consumer sentiment remains cautious.

President Trump's tariff policies have further complicated the economic environment, creating uncertainty for Chinese businesses and impacting trade flows. The tariffs, imposed as part of a broader trade dispute between the U.S. and China, have raised costs for businesses and disrupted supply chains.

Despite these challenges, China's economy has demonstrated resilience, driven in part by strong export performance. The country's manufacturing sector has continued to be a key engine of growth, benefiting from global demand for Chinese goods. The Chinese government has also implemented various policy measures to support economic growth, including infrastructure investment and tax cuts.

The debate over the accuracy of China's economic data is not new. Some analysts have long argued that official figures may be inflated for political reasons. However, Chinese officials maintain that the data is reliable and reflects the true state of the economy. The discrepancy between official figures and independent estimates highlights the challenges of accurately measuring economic activity in a large and complex economy like China.