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China's 2025 Economic Report: Key Data for Foreign Founders

A factual summary of China's 2025 Government Work Report, highlighting economic indicators, policy measures, and business environment changes relevant to foreign entrepreneurs establishing or operating a company in China.

China's 2025 Economic Performance: A Snapshot

In 2025, China's gross domestic product (GDP) grew by 5%, reaching a total of 140.19 trillion yuan. The job market remained stable, with 12.67 million new urban jobs created and an average surveyed urban unemployment rate of 5.2%. Foreign trade saw relatively rapid growth, with exports increasing by 6.1%, and the balance of payments was basically balanced. These figures indicate a resilient economy that continues to expand, providing a large and growing market for foreign businesses.

Key Economic Indicators

• GDP growth: 5%
• GDP total: 140.19 trillion yuan
• New urban jobs: 12.67 million
• Average surveyed urban unemployment rate: 5.2%
• Export growth: 6.1%
• Grain output: 1.43 trillion jin

For foreign founders, these numbers suggest a stable macroeconomic environment with ongoing demand for goods and services. The consistent growth in exports also reflects China's integration into global supply chains, which can be leveraged by foreign-invested enterprises.

Policy Measures Supporting Business and Investment

The government implemented a more proactive fiscal policy and a moderately loose monetary policy, expanding fiscal expenditure and strengthening financial support in key areas. Policy interest rates and reserve requirement ratios were lowered, continuously reducing comprehensive social financing costs. This environment of lower financing costs can benefit foreign companies seeking capital for expansion or operations in China.

To boost consumption, the government expanded the trade-in program for consumer goods, which drove over 2.6 trillion yuan in merchandise sales. Total retail sales of consumer goods exceeded 50 trillion yuan. Service consumption in culture, tourism, and sports was actively unleashed. For foreign businesses in consumer sectors, these measures signal a supportive stance toward stimulating domestic demand.

Investment in equipment manufacturing grew by 11.8%, supported by accelerated fund disbursement for equipment upgrades. A new type of policy-based financial instrument was established to supplement capital for key projects. This indicates opportunities in industrial upgrading and infrastructure-related sectors.

Real Estate and Financial Market Measures

The government continued efforts to stabilize the real estate market by reasonably controlling new land supply, adjusting restrictive measures according to city-specific conditions, and lowering individual housing provident fund loan rates. The task of ensuring housing deliveries was fully completed. For the stock market, comprehensive measures stabilized and revived the market, with active trading. These actions aim to mitigate risks in key sectors, contributing to a more stable business environment.

Local government debt resolution progressed, with orderly replacement of existing hidden debt and reduction of financing platforms. Risk disposal and transformation of local small and medium-sized financial institutions were advanced, significantly reducing the number of high-risk institutions. These steps help maintain financial stability, which is crucial for foreign investors.

Innovation-Driven Development and Industrial Upgrading

China continued to build its scientific and technological strength, with research and development (R&D) expenditure intensity reaching 2.8% of GDP. The turnover of technology contracts grew by 10.8%. Breakthroughs were made in chip self-research, and the Beidou system's applications expanded. The first domestically built electromagnetic catapult aircraft carrier, the Fujian, was commissioned. Domestic large AI models led the global open-source ecosystem.

High-tech manufacturing and equipment manufacturing value-added grew by 9.4% and 9.2%, respectively. Industrial robot and integrated circuit output increased by 28% and 10.9%. New energy vehicle annual production exceeded 16 million units, and electric vehicle charging facilities surpassed 20 million. Energy consumption per unit of GDP decreased by 5.1%.

For foreign founders in technology and advanced manufacturing, these developments indicate a thriving innovation ecosystem and a skilled workforce. The focus on AI, robotics, and new energy creates opportunities for collaboration and investment.

Deepening Reform and Opening-Up

The government implemented guidelines for building a unified national market and issued a new negative list for market access. A campaign to rectify prominent issues in bidding and investment promotion was conducted, and comprehensive efforts to address "involutionary" competition showed results. Pilot reforms for market-based allocation of production factors were launched. State-owned enterprise reform deepened, and measures to promote private investment were introduced.

Efforts to clean up overdue payments to enterprises were accelerated. Autonomous and unilateral opening-up was advanced, with稳步 expansion of unilateral visa-free or comprehensive mutual visa exemption arrangements. The action plan for stabilizing foreign investment was introduced, and the number of newly established foreign-invested enterprises grew by 19.1%. The Hainan Free Trade Port initiated full island customs closure operation. High-quality Belt and Road cooperation continued.

These reforms and opening-up measures directly affect foreign founders. The increase in new foreign enterprises demonstrates growing foreign interest. The negative list clarifies restricted sectors, while visa-free policies facilitate business travel. The Hainan Free Trade Port offers a special regime that may be advantageous for trade and investment.

Urbanization and Rural Revitalization

New urbanization progressed, with the urbanization rate of permanent residents reaching 67.9%. Modern metropolitan areas were cultivated, and urban renewal continued. Policies for granting urban residency to rural migrants were implemented, and pilot programs for new urbanization were launched. Agriculture remained stable, with another bumper harvest. Over 30 million people lifted out of poverty were kept employed.

Regional strategies were intensified, improving coordinated regional development. For foreign businesses, urbanization drives consumption and infrastructure demand, while rural revitalization may open opportunities in agriculture and related industries.

Social Policies and Living Standards

Employment support policies were introduced, and large-scale vocational skills training was conducted. The three-year action plan for building an education powerhouse was advanced, and medical and health infrastructure was strengthened. Pediatric services were fully covered in secondary and tertiary public general hospitals. The long-term care insurance system covered 300 million people. The monthly minimum basic pension for urban and rural residents was raised by 20 yuan, and a private pension system was implemented nationwide.

Cultural industries and tourism flourished, with domestic tourism trips increasing by 16.2% and inbound tourism trips by 17.1%. Major sports events were successfully hosted. These social policies contribute to a stable and healthy workforce, which is beneficial for employers.

Green Development and Environmental Protection

Air quality improved, with the average concentration of fine particulate matter (PM2.5) in cities at prefecture level and above decreasing by 4.4%. The proportion of surface water sections with good quality reached 91.4%. Biodiversity protection projects were implemented. The first batch of large-scale wind and solar power bases in desert areas was basically completed and connected to the grid. New energy storage capacity exceeded 130 million kilowatts, and the share of non-fossil energy consumption reached 21.7%. China announced its 2035 nationally determined contribution target for climate change.

For foreign companies, green development policies may create demand for clean technologies and sustainable practices, aligning with global trends.

Government Reform and Business Environment

The government deepened its self-reform, implemented the central eight-point regulation, and fought corruption. It advanced the rule of law in government, submitting 13 legislative bills to the National People's Congress Standing Committee and formulating or revising 30 administrative regulations. A special action to regulate enterprise-related administrative law enforcement was launched. The mechanism for efficiently handling key matters was improved. Safety production accidents decreased by 8.7%.

These measures aim to create a more transparent and efficient regulatory environment, reducing bureaucratic hurdles for businesses.

Foreign Policy and International Cooperation

China's major-country diplomacy achieved new results. President Xi Jinping and other leaders visited multiple countries and attended major multilateral events. China hosted the Shanghai Cooperation Organization Tianjin Summit, the Global Women's Summit, and the Fourth Ministerial Meeting of the China-CELAC Forum. China opposed protectionism and unilateral bullying, upheld multilateralism and open cooperation, and proposed a global governance initiative. Five rounds of China-US economic and trade consultations achieved positive results, and the two heads of state reached important consensus at their Busan meeting, injecting stability into economic and trade cooperation.

For foreign founders, these diplomatic efforts suggest a commitment to international engagement and stability in trade relations, which can reduce uncertainty for cross-border operations.

Practical Takeaways for Foreign Founders

Based on the 2025 Government Work Report, foreign entrepreneurs considering company registration or operations in China can note several key points:

• Market Access: The new negative list for market access clarifies restricted sectors, while the overall trend is toward greater openness. The 19.1% increase in new foreign enterprises indicates a welcoming environment.
• Innovation Opportunities: Strong R&D intensity and growth in high-tech manufacturing suggest opportunities in technology sectors. The focus on AI, robotics, and new energy aligns with global trends.
• Financial Environment: Lower financing costs and a stable financial system can support business funding needs. The stock market stabilization measures aim to provide a more predictable investment climate.
• Trade and Logistics: Export growth and the Hainan Free Trade Port's full operation offer trade facilitation. Visa-free policies may ease business travel.
• Regulatory Efficiency: Government efforts to streamline administration and improve the business environment can reduce compliance burdens.

Foreign founders should also be aware of ongoing reforms in areas like data elements, with the digital economy core industries' value-added accounting for over 10.5% of GDP. This may affect data-related compliance and opportunities.

In summary, China's 2025 economic performance and policy directions present a mix of stability and dynamism. While challenges remain, the government's measures to support growth, innovation, and opening-up provide a foundation for foreign businesses to thrive.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.