By HASAN MUHAMMAD

China has reported that its economy grew by 5 percent in 2025, pushing its total output past the 140 trillion yuan mark - roughly 20 trillion dollars - for the first time. To put that figure in perspective, the sheer increase in China's wealth over the last few years is roughly equivalent to adding the entire economy of a major European power to the global ledger. China is projected to contribute nearly 30 percent of all global economic expansion.

What is perhaps more significant than the headline growth rate is the changing geography of Chinese trade. Trade with members of the Regional Comprehensive Economic Partnership (RCEP) grew by over 5 percent last year, while transactions with partner countries under the Belt and Road Initiative now account for more than half of China’s total trade volume. This represents a fundamental realignment of global commerce. By lowering trade costs and streamlining customs through these regional agreements, the world's second-largest economy is building a more resilient, albeit more localized, supply chain. This shift is not just a response to external pressures but a proactive strategy to foster new growth engines across the Global South.

The expansion of visa-free travel policies throughout 2025 and into the first quarter of 2026 has had a tangible impact on the ground. Inbound visits by foreign nationals surged by nearly 50 percent last year, reaching over 30 million. Economically, it revitalizes the service and tourism sectors, which grew at a faster clip than traditional manufacturing in the past year.

Despite the narrative of capital flight in some quarters, over 70,000 new foreign-funded enterprises were established in China in 2025 alone, a nearly 20 percent jump from the previous year. This suggests that multinational corporations still view the Chinese market not just as a factory, but as a critical hub for innovation and a primary source of future consumers. The recent removal of all foreign investment restrictions in the manufacturing sector has provided a vast space for these enterprises to expand their operations, signaling a commitment to a high-standard opening-up that goes beyond mere rhetoric.