China's economy expanded by 8.7% last year, only slightly down on the year before.
In the final quarter of the year, the country's economy grew by 10.7% compared with the same period the year before.
The latest GDP figures have exceeded the target set by the Chinese government, the BBC reports.
Goldman Sachs chief economist Jim O'Neill told the BBC that China had replaced exports with domestic demand, both in consumption and investment.
China is now on course to overtake Japan and become the world's second-biggest economy, behind the United States.
Japan announces its latest economic figures next month. Its economy is likely to have contracted by about 6% in 2009.