China has achieved its 5% GDP target for 2025, as confirmed by President Xi Jinping at the Chinese People’s Political Consultative Conference. Rising PMI indicators signal recovery in manufacturing and services, with large enterprises leading growth amid a focus on quality and innovation.
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President Xi Jinping hails 5% GDP growth for 2025, positioning China strongly among global economies despite external pressures.
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Official manufacturing Purchasing Managers’ Index (PMI) reached 50.1 in December, indicating expansion.
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Composite PMI climbed to 50.7, including 50.2 in non-manufacturing sectors like services and construction.
China hits 5% GDP target for 2025 per Xi Jinping, backed by PMI recovery. Explore factory output surge, expert insights, and growth disparities. Track economic signals shaping global markets today.
What is China’s 5% GDP target for 2025?
China’s 5% GDP target for 2025 represents the nation’s annual growth goal, which President Xi Jinping stated has been essentially met. During his address at the annual meeting of the Chinese People’s Political Consultative Conference, he described the year as “extraordinary,” emphasizing a shift from rapid expansion to high-quality development focused on innovation. Official data and private surveys confirm this trajectory through improving economic indicators.
How have China’s manufacturing and services PMI performed recently?
The official manufacturing PMI rose to 50.1 in December, surpassing the 50-point expansion threshold and exceeding forecasts of 49.2. This marked an improvement from November’s 49.2. The composite PMI, encompassing manufacturing and services, advanced to 50.7 from 49.7, entering clear growth territory. Non-manufacturing PMI, covering services and construction, increased to 50.2 from 49.5.
Huo Lihui from China’s National Bureau of Statistics noted a significant boost in new orders, reflecting expansion in both supply and demand sides. Independent data from RatingDog corroborated this, with its PMI hitting 50.1, up from 49.9 and above the 49.8 expectation. Yao Yu, RatingDog’s founder, highlighted seven consecutive months of rising new orders driven by new products and heightened business activity, though company confidence dipped below average levels for 2026 prospects.
Are there disparities in growth across enterprise sizes in China?
Large enterprises spearheaded the recovery, with their PMI surging to 50.8, a 1.5-point gain from the prior month. Medium-sized firms improved marginally to 49.8 but remained below the expansion line. Small businesses continued contracting, as their PMI fell to 48.6 from November’s level.
Market responses were muted: Hong Kong’s Hang Seng index declined 0.83%, while the mainland’s CSI 300 edged up 0.33%. These figures emerged shortly after the central bank held loan prime rates steady amid challenges like subdued demand, a beleaguered housing market, and weaker-than-expected November retail sales, industrial output, and fixed asset investment.
Beijing is navigating currency dynamics carefully, permitting gradual yuan appreciation to maintain stability with trading partners, curb speculative capital inflows, and support import affordability while advancing the yuan’s global reserve status.
Frequently Asked Questions
What was China’s official manufacturing PMI reading for December 2025?
China’s official manufacturing PMI for December 2025 stood at 50.1, crossing into expansion territory for the first time recently. This beat economist expectations of 49.2 and rose from November’s 49.2, signaling improved factory activity driven by stronger new orders according to National Bureau of Statistics data.
Is China’s economy showing recovery signs in late 2025?
Yes, China’s economy demonstrates clear recovery in late 2025, with manufacturing PMI at 50.1, services at 50.2, and composite at 50.7. President Xi Jinping affirmed meeting the 5% GDP target amid quality-focused growth, though challenges persist for smaller firms and demand sectors.
Key Takeaways
- 5% GDP Achievement: President Xi Jinping confirms China met its 2025 target, prioritizing quality over speed.
- PMI Expansion: Manufacturing and services sectors crossed 50-point thresholds, backed by official and private surveys.
- Growth Disparities: Large firms thrive at 50.8 PMI, urging policy focus on small businesses for sustained recovery.
Conclusion
China’s realization of its 5% GDP target for 2025, coupled with robust manufacturing and services PMI gains, underscores resilience amid global headwinds. Expert commentary from the National Bureau of Statistics and RatingDog highlights new order momentum, though enterprise size divides and demand softness warrant vigilance. As President Xi Jinping advocates innovation-driven progress, investors should monitor upcoming data for sustained China GDP growth 2025 trends and their broader market implications.
