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The Dictatorship

China’s economy expands at a 5% pace in 2025

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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 labor on a scaffolding to install insulation layers 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 using heavy machineries to demolish an old building near a residential area in Beijing, Tuesday, 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, Thursday, 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.

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The Dictatorship

Most feel taxes are too high despite new tax law, polls show

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Most feel taxes are too high despite new tax law, polls show

WASHINGTON (AP) — Most Americans still think their taxes are too high, according to recent polls, even after last year’s tax law fulfilled several of President Donald Trump’s tax-related campaign promises.

In fact, a new Fox News poll indicates people are more upset about taxes than they were last year. The findings from the survey, which was conducted in late March, are another sign that Americans are on edge about their personal finances as the U.S. experiences a spike in inflation and sluggish economic growth. Other polling finds that frustration goes beyond personal tax obligations, with many believing that wealthy people and corporations are not paying their fair share, while others worry about government waste.

The surveys come after Trump and Republicans passed a massive tax and spending cut bill last year. The legislation enacted a range of tax breaks, including a boosted child tax credit and new tax deductions for tips and overtime. Tax refunds are up this seasonand many households are expected to see more income from the Republicans’ tax legislation, but the Congressional Budget Office estimated it will ultimately give the largest benefits to the richest Americans.

Republicans have touted the law as evidence that they are making life more affordable for working families. But polling shows that many Americans may not be feeling the benefits, especially as their tax refunds get eaten up by higher prices.

Most say taxes are too high

About 7 in 10 registered voters say the taxes they pay are “too high,” according to the Fox News poll. That’s up from about 6 in 10 last year. The poll shows heightened concern among very liberal voters and Democratic men, but there has also been a sizable increase among groups that Republicans want to court ahead of the midterm elections, such as moderates, rural voters and white voters without a college degree.

Discontent about taxes has been rising for the past few years. Recent polling from Gallupconducted in March, found about 6 in 10 U.S. adults say the amount of federal income tax they have to pay is “too high,” a finding that’s been largely consistent in the annual poll since 2023. That’s approaching the level of unhappiness found in Gallup’s polling from the 1980s through the 1990s, before President George W. Bush’s 2001 and 2003 tax cuts.

Now, about half of Democrats and about 6 in 10 Republicans say their federal income taxes are too high. Republicans tend to view their tax bill more negatively than Democrats, but Gallup’s polling shows that this gap often shrinks when a Republican is president.

Many believe the rich aren’t paying enough in taxes

Most Americans are troubled by the belief that some wealthy people and corporations don’t pay their fair share of taxes, according to a Pew Research Center poll conducted in January. About 6 in 10 Americans said each of those notions bothers them “a lot,” a measure that is largely unchanged in recent years.

By contrast, only about 4 in 10 U.S. adults in that poll said the amount they personally pay in taxes bothers them a lot.

About 8 in 10 Democrats are bothered “a lot” by the feeling that some corporations and rich people aren’t paying their fair share, the Pew survey found, compared to about 4 in 10 Republicans. Government spending is a bigger issue for Republicans, according to the Fox News poll, which found that 75% of registered voters — and a similar share of Republican voters — say “almost all” or “a great deal” of government funding is wasteful and inefficient.

That points to a perception problem for many Americans. Even if their own tax bill is manageable, the idea that the wealthy are underpaying — or that the government is wasting their dollars — bothers many. About half of Americans, 49%, in the Gallup poll say the income tax they will pay this year is “not fair,” which is in line with the record high from 2023.

Broad unhappiness with Trump’s tax approach

Americans’ tax frustration was rising before Trump re-entered the White House, but it’s still a problem for the president’s party — especially if Americans are not feeling the relief that he promised.

The Fox News poll found that about 6 in 10 registered voters, 64%, say they disapprove of how Trump is handling taxes, up from 53% last April. Disapproval has risen most sharply among independents, but also among Democrats and Republicans.

This aligns with a broader feeling that Trump isn’t doing enough to address inflation. Most Americans said Trump had hurt the cost of living “a lot” or “a little” in his second term, according to an AP-NORC poll conducted in January. Roughly 9 in 10 Democrats and about 6 in 10 independents said Trump has had a negative impact on the cost of living.

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This story has been updated to correct that less than half of Republicans, 43%, said Trump has helped the cost of living, while 33% said he hasn’t made a difference and only 23% said he has hurt it.

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The Fox News poll was conducted among 1,001 registered voters from March 20-23. The Gallup poll was conducted among 1,000 U.S. adults from March 2-18. The Pew Research Center poll was conducted among 8,512 U.S. adults from Jan. 20-26. The AP-NORC Poll was conducted among 1,203 U.S. adults from Jan 8-11.

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The Dictatorship

Democrats to confront Trump budget director Russ Vought about his ‘stone cold silence’

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When White House budget director Russell Vought appears before lawmakers on Wednesday, he will almost certainly face questions about a ballooning Pentagon budgeta special war-funding request and an extended Homeland Security shutdown. But Democrats also plan to press him on an issue closer to the Capitol: why he has spent months dodging their questions altogether.

Vought is set to testify Wednesday before the House Budget Committee and again before the Senate’s budget panel on Thursday. It’s a long-awaited chance for Democrats eager to question him on several fronts — including the cost of the Iran war, cuts to health care spending, a demoralized federal workforce and what the government’s own watchdog has described as the illegal impoundment of federal funds.

Lawmakers also have a growing to-do list that involves Vought, including a war supplemental for President Donald Trump’s military campaign in Iran and a reconciliation bill that would fund immigration enforcement agencies. Congress is also supposed to adopt a budget, though that may slip after the president’s budget was weeks late and omitted any information about projected federal debts and deficits.

But Democrats see Vought as “missing and reclusive,” ignoring their questions for months, the Budget Committee’s top Democrat, Rep. Brendan Boyle of Pennsylvania, told MS NOW. Vought didn’t testify before the committee last year, a break with tradition. And written questions to Vought have been met with “stone cold silence,” Boyle said.

In JanuaryHouse Democrats pressed Vought for answers on the administration’s health care plans, its compliance with congressionally approved funding laws, its attempt to withhold nutrition aid during last year’s government shutdown, and plans for federal layoffs.

“He sent us not one word in response,” Boyle said. “And in doing so, it shows their contempt for the United States Congress, and it shows their contempt for our constitutional system.”

Boyle told MS NOW he plans to introduce legislation to legally require Office of Management and Budget directors to testify before the House Budget Committee, after Vought didn’t do so last year. He also said he aims to require that the OMB director respond to members of the committee.

Democrats didn’t hear back from Vought about testifying to the committee until March, when Boyle displayed a picture of Vought as a missing child on a milk carton. That prompted Vought to respond on X that, “I am coming to testify on April 15. You should get up to speed.”

House Budget Committee Chairman Jodey Arrington, R-Texas, had previously assured reporters that Vought would testify in 2026, but Boyle said Democrats hadn’t gotten confirmation until the milk carton incident.

“That’s what shamed him into it,” Boyle said of Vought.

Sen. Patty Murray, D-Wash., the top Democrat on the Senate Appropriations Committee and a member of the Budget Committee, also said Vought had not been responsive to questions from Democratic members of the Senate, including on the cost of the Iran war. She said she’d press Vought at Thursday’s hearing on whether he would distribute funds appropriated by Congress.

Sen. Tim Kaine, D-Va., said he’d ask Vought questions “around this ‘traumatizing the federal workforce’ stuff,” and whether DOGE wasted money by firing employees who needed to be rehired later. And Sen. Sheldon Whitehouse, D-R.I., said he’d ask Vought “how he’s not a corrupt stooge of the fossil fuel industry.”

Senate Republicans, meanwhile, say they haven’t been pressing Vought hard for answers. For example, the missing debt and deficit data in the budget proposal — which Maya MacGuineas, president of the fiscally conservative Committee for a Responsible Budget called “an astonishing lack of information — hasn’t prompted pushback from conservative lawmakers.

Sen. Rick Scott, R-Fla., said he was unbothered by Vought’s decision to leave out the debt data in the president’s budget request.

“Nobody looks at it anyway,” Scott told MS NOW. “It’s just for you guys to write something.”

Sen. Bernie Moreno, R-Ohio, said he’d ask Vought “to give a great update on the progress that we’ve made” in reducing the deficit. When asked about the missing debt and deficit information, Moreno said he didn’t know about it.

“I haven’t had a chance to see the whole thing, to be honest with you, so I’ve got to see what that’s all about,” Moreno told MS NOW.

In prepared remarks obtained by PunchbowlVought reportedly plans to say that, “when President Trump took office, the nation was facing financial catastrophe under the failed leadership of the Biden Administration and decades of status quo spending strangling our nation.”

But federal spending, according to the Treasury Departmenthas increased under Trump. And the federal deficit is going up. (The federal deficit was $1.8 trillion in fiscal 2025 and is projected to be $1.9 trillion in fiscal 2026according to the Congressional Budget Office.)

Republicans have also been patient with the lack of information about the cost of the Iran war.

Senate Majority Leader John Thune, R-S.D., told reporters Tuesday he still hasn’t seen a request and doesn’t know how much it will cost.

“The only thing I think I’ve seen is what you guys report,” Thune told reporters.

Sen. Ron Johnson, R-Wis., told reporters he’d want to scour the funding request’s details before he decides if he’ll support it.

But when pressed whether the administration had answered his questions on the topic, Johnson made it clear he hadn’t focused on those details yet.

“Haven’t really asked,” he said.

Jack Fitzpatrick covers Congress for MS NOW. He previously reported for Bloomberg Government, Morning Consult and National Journal. He has bachelor’s and master’s degrees from Arizona State University.

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Justice Department moves to erase Jan. 6 convictions of Oath Keepers, Proud Boys’ leaders

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Justice Department moves to erase Jan. 6 convictions of Oath Keepers, Proud Boys’ leaders

The Justice Department requested on Tuesday for a federal appeals court to erase the seditious conspiracy convictions of a group of leaders of the Oath Keepers and Proud Boys — two right-wing extremist groups who were involved in the attack on the Capitol on Jan. 6.

The request asks the U.S. Court of Appeals for the District of Columbia Circuit to vacate the individuals’ convictions, effectively erasing their guilty verdicts, and to dismiss the charges with prejudice. A dismissal with prejudice prevents the government from bringing the cases again.

In January 2025, President Donald Trump had already either pardoned or commuted the prison sentences of most of the roughly 1,500 people charged in connection with the 2021 attack on the Capitol after Trump’s loss to President Joe Biden in 2020. While most of the defendants received pardons, wiping their convictions, Trump only commuted the sentences of 14 high-profile defendants to time served, which upheld their convictions while allowing them to leave prison.

The request by the Justice Department would go a step further and erase all the convictions for the extremist group leaders, including Oath Keepers founder Stewart Rhodeswho didn’t receive pardons last January.

Only 12 of those defendants were referenced in the Justice Department’s request on Tuesday. Rhodes, who was sentenced to 18 yearsin prison, is among those who would benefit.

“The government’s motion to vacate in this case is consistent with its practice of moving the Supreme Court to vacate convictions in cases where the government has decided in its prosecutorial discretion that dismissal of a criminal case is in the interests of justice — motions that the Supreme Court routinely grants,” prosecutors wrote in a court filing signed by U.S. Attorney Jeanine Pirro.

Trump himself faces criminal a series of civil lawsuits related to his incitement of the Jan. 6 attack. A federal judge earlier this month rejected his efforts to end the suits ahead of his trial, which has not yet been scheduled.

The Associated Press contributed to this report.

Erum Salam is a 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.

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