In the third quarter of 2025, the growth of the real gross domestic product (GDP) in China ranged at *** percent compared to the same quarter of the previous year. GDP refers to the total market value of all goods and services that are produced within a country per year. It is an important indicator of the economic strength of a country. Real GDP is adjusted for price changes and is therefore regarded as a key indicator for economic growth. GDP growth in China In 2024, China ranged second among countries with the largest gross domestic product worldwide. Since the introduction of economic reforms in 1978, the country has experienced rapid social and economic development. In 2013, it became the world’s largest trading nation, overtaking the United States. However, per capita GDP in China was still much lower than that of industrialized countries. Until 2011, the annual growth rate of China’s GDP had constantly been above nine percent. However, economic growth has cooled down since and is projected to further slow down gradually in the future. Rising domestic wages and the competitive edge of other Asian and African countries are seen as main reasons for the stuttering in China’s economic engine. One strategy of the Chinese government to overcome this transition is a gradual shift of economic focus from industrial production to services. Challenges to GDP growth Another major challenge lies in the massive environmental pollution that China’s reckless economic growth has caused over the past decades. China’s development has been powered mostly by coal consumption, which resulted in high air pollution. To counteract industrial pollution, further investments in waste management and clean technologies are necessary. In 2017, about **** percent of GDP was spent on pollution control. Surging environmental costs aside, environmental issues could also be a key to industrial transition as China placed major investments in renewable energy and clean tech projects. The consumption of green energy skyrocketed from **** exajoules in 2005 to **** million in 2022.

Graph and download economic data for Outstanding Total International Debt Securities to GDP for China (DDDM07CNA156NWDB) from 1987 to 2020 about issues, China, debt, and GDP.

In 2024, the gross domestic product (GDP) of China amounted to around 18.7 trillion U.S. dollars. In comparison to the GDP of the other BRIC countries India, Russia and Brazil, China came first that year and second in the world GDP ranking. The stagnation of China's GDP in U.S. dollar terms in 2022 and 2023 was mainly due to the appreciation of the U.S. dollar. China's real GDP growth was 5.4 percent in 2023 and 5.0 percent in 2024. In 2024, per capita GDP in China reached around 13,300 U.S. dollars. Economic performance in China Gross domestic product (GDP) is a primary economic indicator. It measures the total value of all goods and services produced in an economy over a certain time period. China's economy used to grow quickly in the past, but the growth rate of China’s real GDP gradually slowed down in recent years, and year-on-year GDP growth is forecasted to range at only around four percent in the years after 2024. Since 2010, China has been the world’s second-largest economy, surpassing Japan.China’s emergence in the world’s economy has a lot to do with its status as the ‘world’s factory’. Since 2013, China is the largest export country in the world. Some argue that it is partly due to the undervalued Chinese currency. The Big Mac Index, a simplified and informal way to measure the purchasing power parity between different currencies, indicates that the Chinese currency yuan was roughly undervalued by 38 percent in 2024. GDP development Although the impressive economic development in China has led millions of people out of poverty, China is still not in the league of industrialized countries on the per capita basis. To name one example, the U.S. per capita economic output was more than six times as large as in China in 2024. Meanwhile, the Chinese society faces increased income disparities. The Gini coefficient of China, a widely used indicator of economic inequality, has been larger than 0.45 over the last decade, whereas 0.40 is the warning level for social unrest.

China’s economy is opening up to the outside world. This worries those who fear that country’s huge pool of low-cost labor will drain jobs from U.S. shores, and less expensive goods will spark trade problems. The author points out that not only does China’s untapped market present huge opportunities for U.S. businesses that would surely outweigh any loss of jobs, but the sort of jobs that would move to China left the U.S. a long time ago. And with respect to fair trading practices, China has made much progress.

How the Chinese Economy Works

The Chinese economy is the second largest in the world, after the United States. It is a mixed economy, with elements of both capitalism and socialism. The government plays a significant role in the economy, but there is also a growing private sector.

Agriculture

Agriculture is a major sector of the Chinese economy, employing about 25% of the workforce. China is a major producer of rice, wheat, corn, soybeans, and cotton. The country is also a leading producer of fruits, vegetables, and livestock.

Manufacturing

Manufacturing is the largest sector of the Chinese economy, accounting for about 40% of GDP. China is a major producer of a wide range of goods, including electronics, textiles, apparel, and machinery. The country is also a major exporter of manufactured goods.

Services

Services are the third largest sector of the Chinese economy, accounting for about 45% of GDP. This sector includes a wide range of activities, such as finance, transportation, real estate, and tourism.

Government

The government plays a significant role in the Chinese economy. The government owns and operates many state-owned enterprises, which are important players in the economy. The government also regulates the economy through a variety of policies, such as tariffs, subsidies, and taxes.

Private Sector

The private sector is growing in importance in the Chinese economy. Private companies are playing an increasing role in manufacturing, services, and other sectors. The government is encouraging the growth of the private sector by reducing regulations and providing support for small businesses.

Challenges

The Chinese economy faces a number of challenges, including:

Inequality: The gap between the rich and the poor is growing in China. Environmental degradation: China is facing serious environmental problems, such as air pollution and water pollution. Political stability: The Chinese government is facing increasing challenges to its authority. Outlook

The Chinese economy is expected to continue to grow in the coming years. However, the growth is likely to slow down as the country faces the challenges mentioned above.

Conclusion

The Chinese economy is a complex and dynamic system. It is a mix of capitalism and socialism, with a significant role for the government. The economy is growing rapidly, but it also faces a number of challenges.

We analyze whether--and, if so, how--Americans reacted to the escalation of the trade war between the United States and China in June 2018. To address this issue, we leverage surveys conducted in the U.S. during this phase of the economic clash. We find a significant reduction in support for Donald Trump and his trade policy immediately following the announcement of retaliatory tariffs by the Chinese government. Moreover, respondents’ economic concerns about the trade war were primarily sociotropic and only weakly related to personal pocketbook considerations or local exposure to Chinese retaliatory tariffs. We also find that the trade war's intensification was politically consequential, decreasing support for Republican candidates in the 2018 midterm elections. Our findings indicate that trade wars can be politically costly for incumbent politicians, even among voters who are not directly affected by retaliatory tariffs.

Vale SA faces financial challenges as Chinese economic issues lead to falling iron ore prices, prompting a strategic pivot in its operations.

Although China’s economic statecraft in other regions is well-documented, little is known about how Beijing utilizes economic instruments, especially official financing (COF), in Southeast Asia. What accounts for the amount of official financing China commits to a Southeast Asian country in a given year? We argue that China’s economic statecraft in Southeast Asia is mainly driven by trade concerns. Statistical evidence from mixed-effects models using the most updated aid data between 2000 and 2021 suggests that COF in Southeast Asia is significantly influenced by the volume of imported Chinese goods into a country in the previous year. This country-year panel dataset spans from 2000 to 2021, encompassing eight formal ASEAN member states. These countries include Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam. The dataset contains approximately 200 observations. While this may seem like a modest sample size, it is adequate for our statistical analyses as it includes most stakeholders in the region. We use China's Official Financing (COF) as the Dependent Variable, aggregating annual Official Development Assistance (ODA), Other Official Flows (OOF), and Vague Official Financing (VOF) data for eight ASEAN countries from William and Mary College's AidData.

According to a survey conducted in February 2020, the majority of Japanese companies were concerned that deceleration of consumption or economic stagnation might happen in China due to the outbreak of coronavirus (COVID-19). At a share of almost ** percent, a negative influence on the supply chain was another common concern among the surveyed companies. A lot of companies in Japan rely on Chinese enterprises for their manufacture or sales revenue.

Hong Kong HK: Authorized Institutions: Domestic Loan: Misc: Financial Concerns data was reported at 870,796.232 HKD mn in Mar 2018. This records an increase from the previous number of 821,027.466 HKD mn for Dec 2017. Hong Kong HK: Authorized Institutions: Domestic Loan: Misc: Financial Concerns data is updated quarterly, averaging 112,908.500 HKD mn from Jun 1965 (Median) to Mar 2018, with 212 observations. The data reached an all-time high of 870,796.232 HKD mn in Mar 2018 and a record low of 141.000 HKD mn in Mar 1969. Hong Kong HK: Authorized Institutions: Domestic Loan: Misc: Financial Concerns data remains active status in CEIC and is reported by Hong Kong Monetary Authority. The data is categorized under Global Database’s Hong Kong – Table HK.KA005: Loans and Advances: for Use in Hong Kong by Economic Sector.

China BERD: % of Value Added data was reported at 2.295 % in 2021. This records an increase from the previous number of 2.281 % for 2020. China BERD: % of Value Added data is updated yearly, averaging 1.125 % from Dec 1991 (Median) to 2021, with 31 observations. The data reached an all-time high of 2.295 % in 2021 and a record low of 0.268 % in 1996. China BERD: % of Value Added data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s China – Table CN.OECD.MSTI: Business Enterprise Investment on Research and Development: Non OECD Member: Annual.

Definition of MSTI variables 'Value Added of Industry' and 'Industrial Employment':

R&D data are typically expressed as a percentage of GDP to allow cross-country comparisons. When compiling such indicators for the business enterprise sector, one may wish to exclude, from GDP measures, economic activities for which the Business R&D (BERD) is null or negligible by definition. By doing so, the adjusted denominator (GDP, or Value Added, excluding non-relevant industries) better correspond to the numerator (BERD) with which it is compared to.

The MSTI variable 'Value added in industry' is used to this end:

It is calculated as the total Gross Value Added (GVA) excluding 'real estate activities' (ISIC rev.4 68) where the 'imputed rent of owner-occupied dwellings', specific to the framework of the System of National Accounts, represents a significant share of total GVA and has no R&D counterpart. Moreover, the R&D performed by the community, social and personal services is mainly driven by R&D performers other than businesses.

Consequently, the following service industries are also excluded: ISIC rev.4 84 to 88 and 97 to 98. GVA data are presented at basic prices except for the People's Republic of China, Japan and New Zealand (expressed at producers' prices).In the same way, some indicators on R&D personnel in the business sector are expressed as a percentage of industrial employment. The latter corresponds to total employment excluding ISIC rev.4 68, 84 to 88 and 97 to 98.

Graph and download economic data for Net Issues of International Debt Securities for Issuers in General Government Sector, All Maturities, Residence of Issuer in China (IDSGAMRINICN) from Q4 1987 to Q2 2025 about issues, China, maturity, sector, debt, Net, residents, securities, and government.

China’s High-speed railway (HSR) network had experienced rapid expansion during 2009 to 2013, and how the HSR expansion affects China’s economy has been considerable concerned by both policymakers and researchers. Using firm-level data, this study accessed the effects of HSR on productivity distribution and resource misallocation among manufacturing firms. Incorporating difference in difference idea into a multilevel model, the results suggest significant misallocation rectifying effect of HSR at firm level. This effect is stronger for capital-intensive firms. City-specific analysis indicates that the effects of HSR on firm-level resource misallocation varies with city size, and firms grouped in small cities gain more misallocation rectification than those grouped in big and medium cities. Market potential, which is an important way through which the HSR affects efficient allocation of production resources, is found boost the marginal effect of HSR by reducing labor market segmentation and increasing agglomeration.

A 2025 survey among consumers in China found that ***** percent of respondents prioritized ******************* in virtual companionship services. Other key concerns included response speed and privacy protection.

According to a survey conducted by Statista Consumer Insights among Generation Z in China, ** percent of respondents were trying to spend less money in light of the economic circumstances as of September 2024. In addition, ** percent of respondents felt that their cost of living has increased notably, and ** percent had been experiencing stress and anxiety. However, ** percent of respondents shared none of the worries mentioned in the survey.

Graph and download economic data for Outstanding Total International Debt Securities to GDP for Hong Kong SAR, China (DDDM07HKA156NWDB) from 2004 to 2020 about Hong Kong, issues, debt, and GDP.

China's main stock market index, the SHANGHAI, fell to 3898 points on December 2, 2025, losing 0.42% from the previous session. Over the past month, the index has declined 1.98%, though it remains 15.36% higher than a year ago, according to trading on a contract for difference (CFD) that tracks this benchmark index from China. China Shanghai Composite Stock Market Index - values, historical data, forecasts and news - updated on December of 2025.

Graph and download economic data for Net Issues of International Money Market instruments for All Issuers, Nationality of Issuer in China (DISCONTINUED) (IMMINIAINICN) from Q4 1993 to Q2 2015 about instruments, MMMF, issues, China, and Net.

Since the 2011 Financial Sector Assessment Program (FSAP), China’s economic growth has remained strong, although a necessary economic transformation is underway. China now has the world’s largest GDP in PPP terms, and poverty rates have fallen. However, medium-term growth prospects have moderated. The limits to the investment-driven growth strategy, combined with an aging population, waning dividends from past reforms, and a challenging external environment, have necessitated a transformation towards a more market-oriented economy that is more consumption-based, more services-driven, less credit-dependent and, especially, more efficient. This transformation has already started, as the Chinese authorities are increasingly emphasizing the quality of growth and have pushed structural reforms. The economic transformation requires a fundamental change in the role of the financial system. Historically its role was to channel China’s high savings at low cost to strategic sectors. China’s economic rebalancing is multi-dimensional, and there is a need to significantly improve the financial sector’s capital allocation to promote the rebalancing from investment to consumption; from heavy manufacturing to services; and from large to small enterprises. Looking ahead, the financial system will need to become more balanced, sustainable and inclusive, to facilitate China’s economic transformation, where markets play an increasingly dominant role in resource allocation and where consequences of risk-taking are well-understood and accepted. Maintaining financial stability would also require that remaining gaps in regulatory frameworks be addressed. The standard assessments for the banking, insurance, and securities sectors show a high degree of compliance with international standards, but also point to critical gaps. Themes that cut across China’s regulatory agencies include a lack of independence, insufficient resources for supervising a large and increasingly complex financial sector, and inadequate interagency coordination and systemic risk analysis. The remaining priorities for financial market infrastructure oversight include the adoption of full delivery-versus-payment and a stronger legal basis for settlement finality. Further enhancements to crisis management frameworks are needed to allow financial institutions to fail in a manner that minimizes the impact on financial stability and public resources. This would require amongst others greater emphasis on financial stability rather than social concerns in dealing with real and potential crisis situations, the introduction of a special resolution regime for failing banks, and a streamlining of the current system of financial safety nets.

Actual value and historical data chart for China International Debt Issues To GDP Percent