China's commerce data for 2025 points to a stabilising domestic economy, with consumption playing a larger role in growth, while foreign investment continues to shift toward higher-value sectors.

At a briefing hosted by the State Council Information Office, officials from the Ministry of Commerce outlined developments across consumption, trade and investment, highlighting a year of steady expansion despite a complex external environment.

Consumption Takes a Larger Role

Retail sales of consumer goods reached RMB 50.1 trillion, marking the first time the figure has exceeded the RMB 50 trillion threshold. Consumption accounted for 52% of economic growth, reinforcing its role as the primary driver.

Growth was supported by policy measures, including trade-in programs for consumer goods such as automobiles and home appliances, which generated RMB 2.61 trillion in sales.

At the same time, consumption patterns continued to evolve. Demand for services rose steadily, while sectors linked to digital, green and health-related consumption expanded. New energy vehicles accounted for more than half of new passenger car sales, reflecting structural changes in the consumer market.

Inbound consumption also improved, supported by visa policy adjustments and tax refund incentives for overseas visitors.

Trade Remains Resilient

China's foreign trade maintained moderate growth. Total goods imports and exports reached RMB 45.47 trillion, up 3.8% year on year, while services trade recorded faster expansion.

The composition of trade is gradually shifting. Authorities highlighted growth in services and digital trade, alongside continued diversification of export markets.

Private enterprises played an increasingly important role, accounting for over half of total trade value.

Major platforms such as the China International Import Expo continued to support imports and facilitate market access for overseas products.

Foreign Investment Moves Up the Value Chain

Foreign investment trends suggest a reallocation rather than a decline. In 2025, more than 70,000 foreign-invested enterprises were newly established, up 19.1% year on year.

Total utilised foreign investment reached RMB 747.7 billion, with high-tech industries accounting for 32.3% of inflows.

Outbound investment remained stable, with non-financial direct investment totaling RMB 1 trillion, reflecting continued expansion of Chinese companies overseas.

Deeper Integration with Global Markets

China's trade and investment links continue to broaden. Trade with Belt and Road partner economies grew faster than overall trade and now accounts for over half of total trade volume.

The country has signed 24 free trade agreements covering 31 economies, representing around 45% of goods trade.

At the same time, cooperation is extending into areas such as digital trade, green development and supply chain integration.

A Gradual Shift in Growth Drivers

The 2025 data suggests that China's economy is undergoing a gradual shift rather than a sharp change. Consumption is playing a larger role, while trade and investment are becoming more diversified and increasingly focused on higher-value activities.

For international businesses, this points to a market that remains large and active, but where growth opportunities are increasingly tied to technology, services and structural upgrading rather than volume expansion alone.