By Hasan Muhammad

Editor's Note: The writer is a freelance columnist on international affairs based in Karachi, Pakistan. The article reflects the author's opinions and not necessarily the views of China Economic Net.

China's economy has demonstrated remarkable resilience in 2025, achieving growth around 5 percent amid global uncertainties and domestic adjustments. Recent gatherings in Beijing, including the annual economic conference hosted by the China Center for International Economic Exchanges and the Central Economic Work Conference, have underscored this strength while outlining priorities for high-quality development as the country enters the 15th Five-Year Plan period starting in 2026.

The economy has advanced steadily despite pressures from supply chain disruptions, geopolitical tensions, and a shifting global trade environment. Major indicators have performed better than anticipated, with the economic size projected to reach about 140 trillion yuan this year. International bodies such as the International Monetary Fund and Goldman Sachs have upgraded their forecasts for 2025 growth to 5 percent, reflecting confidence in China's role as a primary driver of global expansion. Even as some observers note slowing momentum in areas like retail sales and factory output toward year-end, the overall trajectory points to successful navigation of extraordinary challenges over the past five years.

A key theme emerging from these discussions is the commitment to policy support that prioritizes stability alongside progress. Fiscal measures will remain proactive, maintaining appropriate deficit levels and expenditure to bolster near-term growth while guarding against future risks. Monetary policy will stay accommodative, focusing on improved transmission to support domestic demand and maintain exchange rate stability. Coordination across fiscal, financial, and reform efforts will aim to amplify their effects, ensuring consistency in addressing both cyclical and structural issues.

Foreign trade has shown particular resilience, expanding despite a difficult international backdrop. Efforts will continue to promote digital and green trade, support service exports, and balance imports with exports for sustainable development. This approach recognizes the challenges posed by trade imbalances and rising protectionism elsewhere, yet emphasizes China's contribution to global supply chains through reliable and innovative offerings.

Boosting consumption forms a central pillar of the strategy ahead. Programs for equipment upgrades and consumer goods trade-ins have already driven sales growth, with new energy vehicle penetration nearing high levels. Future steps include aligning household income growth with economic expansion, raising pensions, and removing barriers to service consumption. Inbound tourism and related spending also hold untapped potential, with improvements to the environment for overseas visitors seen as a way to stimulate demand. The goal is to create a virtuous cycle where new supply meets evolving needs, fostering higher-quality goods and services.

Green development remains integral to China's vision of high-quality growth. Plans call for building a robust energy system, accelerating new energy frameworks, and enhancing clean use of existing resources. Progress toward carbon peaking will involve industry upgrades, expansion of carbon trading markets, and cultivation of emerging sectors like hydrogen and green fuels. Zero-carbon initiatives in industrial parks highlight the integration of environmental goals with economic advancement.

The business environment will see further improvements through fair regulation, curbing disorderly competition, and supporting both state-owned and private enterprises. Reforms to state firms, better protections for private business, and resolution of payment arrears aim to foster a market based on quality and competition.

As China looks to 2026, these policies signal a balanced response to internal demands and external changes. The emphasis on domestic circulation, innovation, and opening-up positions the economy to sustain momentum while adapting to a multipolar world. Upgraded international forecasts, including those from the World Bank and OECD, affirm this potential, even as growth moderates slightly next year.