**Beijing, China –** China’s economy concluded 2025 with a 5% Gross Domestic Product (GDP) expansion, a figure that, while meeting its annual objective, represents one of the nation's more subdued growth rates in recent history. This performance was largely buoyed by a robust surge in exports, which served to counteract the persistent headwinds of flagging domestic consumer demand and a protracted downturn in the property sector. Simultaneously, a significant development in the global artificial intelligence landscape emerged as the United States administration granted approval for Nvidia to supply its cutting-edge H200 AI chips to select clients within China, a move poised to reshape competitive dynamics in the burgeoning AI industry.
The National Bureau of Statistics, in its year-end assessment, acknowledged the economy's capacity to maintain a trajectory of steady progress amidst a complex web of domestic and international pressures. It highlighted notable advancements in the pursuit of high-quality development. However, the bureau also tempered this optimism with a candid appraisal of existing vulnerabilities. Officials underscored the increasing influence of external environmental shifts, the pronounced imbalance between robust supply capabilities and subdued domestic demand, and the enduring presence of both long-standing structural issues and emerging challenges that continue to confront economic development. The final quarter of 2025 saw an annualized growth rate of 4.5%, indicating a slight deceleration from earlier in the year.
A key driver behind China's economic resilience in 2025 was the remarkable performance of its export sector. Total export value climbed by an impressive 6.1%, reaching a substantial 26,989 billion yuan. This export strength contributed to a record-breaking trade surplus, which approached the $1.2 trillion mark. For Chinese enterprises, particularly those facing the impact of tariffs and trade restrictions imposed by the United States, the strategic imperative to diversify markets became paramount. Consequently, many firms actively sought out new avenues for trade and investment across Asia, Africa, Latin America, and Europe.
The decision by the US to permit the export of H200 chips, even with restrictions, marks a significant inflection point. Previously, stringent US regulations had largely curtailed the flow of advanced AI hardware to China. Chinese developers, in response to these constraints, had been ingeniously adapting, focusing on optimizing algorithms, leveraging vast datasets, and scaling deployment of services utilizing less sophisticated hardware, such as Nvidia's H20 model. The anticipated availability of H200 chips, however, promises to expedite development timelines and reduce the iterative costs associated with building and refining sophisticated AI systems. This development could potentially accelerate the global diffusion of AI capabilities and introduce new competitive pressures.
This evolving AI landscape coincides with a palpable shift in investor sentiment. The era of unbridled optimism surrounding artificial intelligence appears to be giving way to a more pragmatic focus on demonstrable earnings growth and operational resilience. As investors anticipate Nvidia's upcoming earnings report, slated for Wednesday, the market is increasingly scrutinizing the tangible financial outcomes of AI investments. This recalibration suggests a move away from speculative valuations towards a demand for concrete returns, potentially influencing the trajectory of tech stock valuations and capital allocation within the AI sector for the foreseeable future. The interplay between China's economic performance and the evolving global AI technology market will undoubtedly be a critical narrative to follow in the coming months.