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China's economy is booming: exports as hope in the crisis!
China's economy grows by 5.2% in Q2 2025, driving exports but showing structural weaknesses. Impact on the global economy.
China's economy is booming: exports as hope in the crisis!
China's economy appeared robust in the second quarter of 2025 and recorded growth of 5.2 percent compared to the previous year. This means that growth exceeds the expectations of economists, who had expected 5.1 percent. However, this raises questions as the increase is just below the 5.4 percent growth in the first quarter and the domestic economy continues to show weaknesses. The increase in the second quarter is mainly due to exports, which increased by 5.8 percent in June compared to the same month last year. These figures make it clear how much China relies on foreign trade to sell its own industrial production. The standard reports that China's government is aiming for annual growth of around five percent.
The overall growth rate for the first half of 2025 is 5.3 percent. Despite this positive development, many economists expect the economy to slow in the second half of the year. Structural problems, such as the real estate crisis, remain unresolved and could have a negative impact on economic stability. While industrial production rose 6.8 percent in June, above expectations, retail sales showed a weaker picture, rising only 4.8 percent.
Global trade changes
China's global market share is now 16 percent, while Germany has 8 percent. China has overtaken Germany in several industrial sectors, with the exception of automotive, medical technology and aviation. The position of German companies in Europe and North America remains strong, but they are increasingly losing market share in other regions. Particular opportunities are seen for German industry in South Asia, especially in India. This assessment results from the tense relationship between China and India and possible free trade agreements between the EU and India daily news.
In summary, although China's export growth is masking the current economic challenges, the ongoing structural problems cannot be ignored. Dependence on foreign economic factors could play a central role in China's future development in the ongoing globalized economy.