Country's reform keeps growth on right track

China's economy has demonstrated resilience, stability and the potential for long-term improvement in the first half of 2025, despite a complex external environment and rising global uncertainties. According to data released by the National Bureau of Statistics on Tuesday, China's GDP grew by 5.3 percent year-on-year in the first half of 2025. The second-quarter expansion of 5.2 percent, following 5.4 percent in the first quarter, was within the government's annual target of around 5 percent, underscoring the world's second-largest economy's steady progress.

A series of tariff threats, restrictions on high-tech cooperation and politicized business decisions by certain Western countries have added to the external pressure. In addition, the global economic recovery remains uneven, with inflation, debt risks and geopolitical tensions weighing on investor confidence worldwide.

However, China's vast domestic market, improving consumption structure and a strong manufacturing sector provided important buffers against these uncertainties. According to the NBS, domestic demand was the primary driver of economic growth in the first half of the year and the government will introduce more favorable policies to promote consumption in the second half.

At a time when exports face growing headwinds from external uncertainties, further unleashing the foundational role of domestic demand, particularly consumption, will help growth. Only by revitalizing consumption and establishing a virtuous cycle where demand drives supply and supply creates demand can China effectively remove bottlenecks, address structural constraints and steer the economy back to its potential growth trajectory.

Notably, high-tech manufacturing increased by 9.5 percent and the production of 3D printing devices, new energy vehicles and industrial robots all saw strong growth. Retail sales of consumer goods and services also surged, contributing to a healthier demand-driven cycle.

At the same time, employment and consumer prices remained generally stable. In the first half of the year, the urban surveyed unemployment rate averaged 5.2 percent and the consumer price index dropped by 0.1 percent year-on-year. More importantly, the growth in per capita disposable income kept pace with GDP, helping improve people's wellbeing and boosting confidence.

China's policy mix in 2025 has combined short-term support with long-term structural reforms. Instead of large-scale stimulus, targeted measures were rolled out to support key sectors, boost private enterprise confidence and stimulate innovation. Financial institutions enhanced credit support to small and micro businesses and tax and fee reductions were extended to lighten burdens. Meanwhile, reforms in the digital economy, advanced manufacturing and green transition continue to unfold.

While some foreign media outlets focused on China's "slowing momentum", many international businesses still see China as an irreplaceable player in the global supply chain. The value added of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 4.3 percent in the first half of the year. China's imports and exports grew by 2.9 percent in the first six months, another example of the resilience of trade despite significant external shocks in the second quarter.

In the second half of 2025, growth momentum is expected to hold steady, driven by proactive macroeconomic policies, deeper market opening, resilient supply chains and expanding trade diversification, all reinforcing confidence in achieving the annual growth target.

Indeed, China is not seeking temporary highs in growth, but a more balanced, sustainable and innovation-led trajectory. The challenges ahead, from global uncertainties to structural pressures, are real, but so are the strengths and opportunities. As long as the economy continues to reform, open up and stay focused on quality, China's development will remain a stabilizing force in a volatile world.