China Faces Economic and Geopolitical Crossroads in 2025

Beijing grapples with domestic economic challenges, a struggling property sector, and a potential trade clash with the Trump administration.

China's economy is under pressure from weak consumer confidence, a prolonged property market slump, and deflationary risks, despite aggressive stimulus measures introduced in late 2024.
The property sector, where 70% of household wealth is tied, remains fragile, with unfinished projects and declining home values dampening consumer spending and confidence.
Donald Trump's return to the U.S. presidency raises the likelihood of sharply increased tariffs on Chinese imports, prompting concerns about trade disruptions and global supply chain impacts.
Beijing is prioritizing boosting domestic consumption, addressing youth unemployment, and stabilizing the housing market to shift its economic model toward sustainable, consumption-driven growth.
Geopolitical tensions, including U.S.-China rivalry, Taiwan relations, and South China Sea disputes, are expected to intensify, with global implications for trade, security, and diplomacy.