Economic Growth and Trade - China's economy grew by 5.0% in the previous year, achieving the government's target by capturing a record share of global demand for goods to compensate for weak domestic consumption [1] - The trade surplus reached a record $1.2 trillion, which is 20% higher than in 2024, equivalent to the size of a top 20 economy like Saudi Arabia [2] - Shipments to the U.S. decreased by 20%, while exports to other global markets increased significantly, indicating a shift in focus for Chinese manufacturers [3][4] Domestic Economic Challenges - Despite the success in exports, there is a persistent weakness in the domestic economy, with industrial output rising by 5.9% compared to retail sales growth of only 3.7%, and property investment declining by 17.2% [5] - Analysts warn that unless resources are redirected towards boosting consumer spending, future economic growth may slow sharply, with a projected growth rate of 4.5% for 2026 [6] Long-term Sustainability of Trade Surplus - Relying on exports for long-term growth is not sustainable; if the trade surplus continues to grow at the same rate, it could match France's $3 trillion economy by 2030 and Germany's $5 trillion output by 2033 [7] - There are concerns about the potential for a wider protectionist backlash abroad if the trade surplus expands indefinitely at the current rate [8]