XU Qinhua: The Key Highlights of China's Economic Performance and the Driving Factors Behind Them

China recorded GDP of more than 66 trillion yuan in the first half of 2025, achieving a 5.3% growth rate against the headwinds of a lingering global pandemic, volatile geopolitics and rising trade protectionism. The strong performance was driven by several factors.

First, domestic demand has been the primary engine of the growth. In H1 2025, internal demand contributed 68.8% of GDP growth, with domestic final consumption expenditure alone accounting for 52%. Policies such as equipment upgrades and the “Trade-in of Old Consumer Goods” proved highly effective: the trade-in initiative generated 1.1 trillion yuan in sales and roughly 175 million consumer subsidies during the period.

Second, market entities have become markedly more dynamic. By the end of May 2025, the number of registered private enterprises nationwide surpassed 58 million, up more than 40% from end-2020. These firms created over 80% of new urban jobs, providing a resilient foundation for the economy’s upward momentum.

Third, China’s counter-cyclical macro policies have fostered sound economic development. During the 14th Five-Year Plan period (2021-2025), China’s economy expanded by more than 35 trillion yuan (about US$4.89 trillion), averaging 5.5% annual growth and laying a solid base for this year’s 5.3% “high-level operation.”

(Excerpted from the views of XU Qinhua, Vice Dean at the National Academy of Development and Strategy (NADS), Renmin University of China (RUC), in an interview with CGTN The Point with LIU Xin.)

Linkage: https://www.cgtn.com/tv/replay?id=CHAdIIA