How China Became a Global Economic and Tech Superpower: Growth, Trade & Innovation in 2025

Sherazur Rahman#

In the 21st century, China has significantly emerged as the world’s second-largest and most influential economic and tech superpower, right behind the United States. But this remarkable transformation didn’t happen overnight. It’s the result of years of careful planning, economic reforms, and tireless efforts from both the Communist leadership under Mao Zedong and the honorable Chinese people.

After the devastation of World War II, China was left with a fragile and fragmented economy. However, from the very beginning, the government set out long-term development plans aimed at systematically rebuilding and modernizing the nation. One of the most groundbreaking moves was revamping the education system. Instead of sticking to traditional academic models, China embraced a technical and industry-focused education approach that prioritized practical skills and innovation.

This shift laid the foundation for a new industrial era, allowing the country to evolve from an agrarian economy into a labor-intensive and technology-driven industrial powerhouse in just a few decades. During the 1950s and 60s, Western media often ridiculed China’s economic challenges. Ironically, today, even the combined economies of several European nations can’t keep up with the size of China’s national economy. According to Forbes Magazine, by 2025, the nominal GDP of the United States is projected to be $30.34 trillion, while China’s GDP is expected to reach $19.53 trillion.

Despite facing global economic challenges in recent years, China has held onto the title of having the world’s largest foreign exchange reserves. As reported by the China’s State Administration of Foreign Exchange and Wikipedia, as of May 7, 2025, China’s forex reserves were at $3.3477 trillion, compared to $3.380 trillion in November 2024.. This continues to showcase China’s financial strength and international liquidity.

Despite facing challenges during the peak of the U.S.-China trade tensions in 2023, China’s foreign trade made a notable comeback by the end of 2024. According to data from the General Administration of Customs of China, the total value of imports and exports hit $5.98 trillion in 2024, a slight increase from $5.87 trillion in 2023, although it still fell short of the $6.05 trillion recorded in 2022.

On the other hand, in 2024, China exported goods and services worth approximately 25.45 trillion yuan (around $3.47 trillion) while importing approximately $2.51 trillion. In contrast, 2023 saw exports of $3.38 trillion and imports of $2.56 trillion, reflecting a 4.6% decline in exports and a 5.5% drop in imports compared to 2022.

China has significantly boosted its global exports of electric and electronic goods in recent years, capitalizing on its domestic innovation and manufacturing capabilities. According to China’s General Administration of Customs, in 2024, China exported an estimated $929 billion worth of home appliances, electronics, and electric goods and technologies worldwide. This remarkable figure highlights China’s growing strength in innovation-driven industrial output and its dominance in the global tech economy.

The IMF reported that China’s GDP growth rate for 2024 was 4.8%, surpassing the U.S.’s 2.8%. Looking ahead to 2025, the IMF predicts China will grow at 4.5%, while the U.S. is expected to see a growth of 2.2%. However, not everything is going smoothly. Reuters highlights that youth unemployment (ages 25–29) rose to 7.3% in 2025, up from 6.9% in 2024, and unemployment among those aged 30–59 increased to 4.3% from 4.0%.

China also ranks among the top recipients of global remittances. A World Bank blog notes that the country received around $48 billion in remittances in 2024, placing it behind India ($129.1 billion) and Mexico ($68.2 billion) but ahead of the Philippines ($40.2 billion) and Pakistan ($33.2 billion). Nevertheless, as of September 2024, China’s total external debt was approximately $2.517 trillion.
Critics in the West contend that China’s foreign lending practices have led to debt traps for numerous low-income and developing nations. Over the last decade, China has emerged as the world’s largest bilateral lender. According to AidData, from 2000 to 2022, China provided nearly $1.3 trillion in loans to over 150 countries, with around 80% of this funding directed toward financially distressed nations like Sri Lanka, Pakistan, Zambia, and Ethiopia.##