The Dictatorship
China’s economy expands at a 5% pace in 2025
HONG KONG (AP) — China’s economy expanded at a 5% annual pace in 2025, buoyed by strong exports despite U.S. President Donald Trump’s tariffs.
However, growth slowed to a 4.5% rate in the last quarter of the year, the government said Monday. That was the slowest quarterly growth since late 2022, when China was beginning to loosen stringent COVID-19 pandemic restrictions. The economy, the world’s second largest, grew at a 4.8% annual pace in the previous quarter.
China’s leaders have been trying to spur faster growth after a slump in the property market and disruptions from the pandemic rippled through the economy.
As expected, annual growth last year was in line with the government’s official target for an expansion of “around 5%.”
Workers on scaffolding install insulation on a residential building under construction in Beijing on Dec. 3, 2025. (AP Photo/Andy Wong)
Workers on scaffolding install insulation on a residential building under construction in Beijing on Dec. 3, 2025. (AP Photo/Andy Wong)
In quarterly terms, the economy grew 1.2% in October to December.
Strong exports helped to compensate for weak consumer spending and business investment, contributing to a record trade surplus of $1.2 trillion.
Chinese exports to the U.S. suffered after President Donald Trump returned to office early last year and began raising tariffs. But that decline was offset by shipments to the rest of the world. Soaring imports of Chinese goods are leading some other governments to take action to protect local industries, in some cases raising import duties.
Trump and Chinese leader Xi Jinping agreed to extend a truce in their bruising tariffs war, also helping to alleviate pressure on China’s exports. But China’s exports to the U.S. still fell 20% last year.
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“The key question is how long this engine of growth can remain the primary driver,” Lynn Song, chief economist for Greater China at Dutch bank ING wrote in a recent note. “Should more economies also start ramping up tariffs on China, as Mexico has done and the E.U. has threatened to do, eventually, a tighter squeeze will be seen.”
China’s leaders have repeatedly highlighted boosting domestic demand as a policy focus, but their effects have so far been limited. A trade-in program for drivers to replace older cars with more energy-efficient models, for example, has been losing steam in recent months.
“Stabilization, not necessarily recovery, of the domestic property market is key to revive public confidence and, hence household consumption and private investment growth,” said Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management.
Workers demolish an old building near a residential area in Beijing on Dec. 23, 2025. (AP Photo/Andy Wong)
Workers demolish an old building near a residential area in Beijing on Dec. 23, 2025. (AP Photo/Andy Wong)
China has also provided trade-in subsidies for home appliances such as refrigerators, washing machines and TVs. While major consumer stimulus policies in 2025 — including such subsidies — are set to continue in 2026, they may be scaled back, Weiheng Chen, global investment strategist at J.P. Morgan Private Bank, said in a recent note.
Investments in artificial intelligence and other advanced technologies remain a key priority for China’s ruling Communist Party as it moves to boost self-reliance and rival the U.S. Meanwhile, many ordinary Chinese and small businesses are struggling with tough times and troubling uncertainty over jobs and incomes.
Liu Fengyun, a 53-year-old noodle restaurant owner in a small county in southwestern China’s Guizhou province, said business has become very difficult these days. Some of her customers told her that “money is hard to earn now” and “making breakfast at home is cheaper.”
“People all say, ‘The overall environment is not good right now — what more can you expect? People don’t have money anymore. Nothing is easy to do now,’” Liu said.
Kang Yi, head of China’s National Bureau of Statistics, on Monday told reporters that China’s economy had sustained “steady progress in 2025 despite multiple pressures” and has “solid foundations” in countering risks.
A vendor sells hot drinks in Beijing on Dec. 18, 2025. (AP Photo/Ng Han Guan)
A vendor sells hot drinks in Beijing on Dec. 18, 2025. (AP Photo/Ng Han Guan)
Some economists and analysts believe China’s actual economic growth in 2025 was slower than official data suggest. The Rhodium Group, a think tank, said last month it expected China’s economy to grow only by 2.5% to 3% last year.
The Chinese economy expanded at a 5% annual rate in 2024, and 5.2% in 2023, according to government data. Ambitious official growth targets have also trended down over the past few years, from 6% to 6.5% in 2019 to “around 5%” in 2025.
A slower annual expansion is expected for 2026. Deutsche Bank forecasts that China’s economy will grow about 4.5% in 2026.
A strong and stable economy is considered crucial for social stability, a primary priority for China’s leaders. While China could probably maintain social stability even at lower economic growth rates, Beijing “wants the economy to keep growing”, said Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis.
China likely needs to sustain a roughly 4%-5% annual expansion in order to reach its soft target by 2035 of $20,000 gross domestic product (GDP) per capita, he said.
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Associated Press researcher Shihuan Chen in Beijing contributed to this report.
The Dictatorship
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The Dictatorship
‘It’s fantastic’: Trump tells MS NOW he’s seen celebrations after Iran strikes
President Donald Trump called the celebrations in the streets of Iran “fantastic” following the killing of the country’s supreme leaderAyatollah Ali Khamenei, during a brief phone call with MS NOW on Saturday night.
Trump told MS NOW that he’s seen the celebrations in Iran and in parts of America, after joint U.S.-Israel airstrikes killed Khamenei.
“I think it’s fantastic,” the president said of the celebrations. “I’ve seen them in Los Angeles, also — celebrations.”
“I’ve seen them in Los Angeles, celebrations, celebrations,” Trump said, accentuating the point.
The interview took place roughly 11 hours before the Pentagon announced the first U.S.military casualties of the war. U.S. Central Command said three American service members were killed in action, and five others had been seriously wounded.

Revelry broke out in Iran, the United States and across the globe on Saturday, with Iranians cheering the death of Khamenei, who led Iran with an iron fist for more than 30 years, cracking down on dissent at home and maintaining a hostile posture with the U.S. and Israel.
Asked how he was feeling after the strike on Khamenei, whose death was confirmed just a few hours earlier, Trump said it was a positive development for the United States.
“I think it was a great thing for our country,” he said.
The call — which lasted less than a minute — came after a marathon day, which began in the wee hours of the morning with strikes on Iran and continued with retaliatory ballistic missiles from Tehran targeting Israel and countries in the Middle East region that host U.S. military bases.
The day ended with few answers from the White House to increasing questions about the long-term future of Iran, how long the U.S. will continue operations there, and the metastasizing ramifications it could have on the world stage. In fact, the president has done little to convince the public to back his Iran operation, nor to explain why the country is at war without the authorization of Congress.
On perhaps the most consequential day of his second term, Trump did not give a formal address to the public, nor did he hold a press conference. Instead, he stayed out of public view at Mar-a-Lago, his private club and residence in Palm Beach, Florida, where he attended a $1 million-per-plate fundraising dinner on Saturday evening.
But throughout the day, Trump took calls from reporters at various new outlets, including from MS NOW at around 11 p.m. ET.
The strikes, known formally as “Operation Epic Fury,” came after months of talks over Iran’s nuclear program, and warnings from Trump that he would strike Tehran if they did not agree to his often shifting conditions.
At 2:30 a.m. ET on Saturday, Trump posted a video to social media announcing the operation, which he said was designed to “defend the American people by eliminating imminent threats from the Iranian regime, a vicious group of very hard, terrible people.”
“The lives of courageous American heroes may be lost and we may have casualties. That often happens in war,” Trump said when he announced the strikes on Iran.
Mychael Schnell is a reporter for MS NOW.
Laura Barrón-López covers the White House for MS NOW.
The Dictatorship
Pentagon announces first American casualties in Iran
Three U.S. service members were killed and five seriously wounded as the United States and Israel launched attacks on Iran, U.S. Central Command said Sunday morning.
The three service members — the first Americans to die in the conflict — were killed in Kuwait, a U.S. official said.
Several others sustained minor injuries from shrapnel and concussions but will return to duty, the Pentagon said. The identities of the dead and wounded have not been made public.
“The situation is fluid, so out of respect for the families, we will withhold additional information, including the identities of our fallen warriors, until 24 hours after next of kin have been notified,” Central Command said in a statement.
The U.S. and Israel launched sweeping airstrikes on Iranon Saturday, killing Ayatollah Ali Khameneithe country’s supreme leader for nearly four decades. Iran has vowed retaliation and hit several U.S. military bases across the region.
According to U.S. Central Command, Iran has also attacked more than a dozen locations, including airports in Dubai, Kuwait and Iraq, and residential neighborhoods in Israel, Bahrain and Qatar.
Israel Defence Forces said Sunday that Iran fired missiles toward the neighborhood of Beit Shemesh, killing civilians. The missile hit a synagogue, killing at least nine people, according to the Associated Press.
AP reported that authorities said at least 22 people were killed and 120 others wounded when demonstrators tried to attack the U.S. Consulate in Karachi in Pakistan.
The violence came after the United States and Israel attacked Irankilling its Supreme Leader Ayatollah Ali Khamenei. Police and officials at a hospital in Karachi said that at least 50 people were also wounded in the clashes and some of them were in critical condition.
On Sunday, Israel Defence Forces said on X, “It’s official: All senior terrorist leaders of Iran’s Axis of Terror have been eliminated.”
President Donald Trump told CNBC’s Joe Kernen on Sunday that the operation in Iran is “moving along very well, very well — ahead of schedule.”
In a phone call with MS NOW late Saturday, Trump called the celebrations in the streets of Iran “fantastic” following the killing of Khamenei.
Confirming Khamenei’s death, Prime Minister Benjamin Netanyahu said Sunday: “We have eliminated the tyrant Khamenei and dozens of senior figures of the oppressive regime. Our forces are now striking at the heart of Tehran with increasing intensity, set to escalate further in the coming days.”
The exchange of hostilities comes after weeks of fragile negotiations between the U.S. and Iran over Iran’s nuclear operations.
Esmail Baghaei, a spokesperson for Iran’s foreign ministry, called the joint U.S-Israeli attack an “unprovoked, unwarranted act of aggression” in an interview with MS NOW’s Ali Velshi on Sunday. He said Iran’s nuclear program has been used a pretext for the attack.
“We have every right to defend our people because we have come under this egregious act of aggression,” Baghaei said.
Trump announced the attack early Saturday during a short video posted on his Truth Social account. He called for an end to the Iranian regime and urged Iranians to “take back the country.”
Negotiators and mediators from Oman were supposed to meet in Vienna on Monday to discuss the technical aspect of a potential nuclear deal.
Rep. Eric Swawell, D-Calif., told MS NOW’s Alex Witt on Sunday afternoon that the president’s military operation in Iran was illegal, echoing what many lawmakers have said in citing that under the U.S. Constitution only Congress can declare war.
“This is a values argument. We don’t just lob missiles into other countries when we are not provoked, attacked and have no plan for what comes next,” he said.
“We have been shown zero evidence that anything changed in Iran from last year when the president did not come to Congress and took a strike on Iran,” Swalwell said.
In June the U.S. struck three Iranian nuclear sites. Trump said the facilities had been “completely and totally obliterated.” But experts and U.S. officials said the sites were damaged but not destroyed.
Erum Salam is breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian and is a graduate of Texas A&M University and the Columbia University Graduate School of Journalism. Follow her on X, Bluesky and Instagram.
Akayla Gardner is a White House correspondent for MS NOW.
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