China meets 5% GDP target as export boom masks weak domestic demand

China’s economy managed to hit its official 5 % growth target in 2025 largely thanks to a surge in exports that helped generate a record trade surplus despite faltering domestic demand and sluggish investment. Export-led growth has kept factories humming and widened the current-account surplus, cushioning GDP figures amid a slump in property and consumer spending. But this export-heavy model brings global trade imbalances and dependence on external markets, leaving risks if overseas demand weakens and highlighting the need to boost domestic consumption for more balanced, sustainable growth.

China hits growth goal after exports defy US tariffs - BBC News

1. What is meant by export-led growth and why has the Chinese economy become more reliant on it?.

2. Discuss the impact of running a current account surplus for the Chinese economy.

3. Discuss the impact of global trade imbalances, such as China’s export surplus, on the growth of the global economy.