🔗 Share this article

China's economic growth decelerated during the quarter ending in September as trade tensions with the United States escalated.

The world's second-largest economy expanded by 4.8% compared to the same period in the previous year, representing its slowest rate in twelve months, according to government statistics published on the start of the week.

This economic data emerges following China's enforcement of comprehensive controls on its shipments of rare earths - essential elements for global technology production, a move that rocked the fragile trade truce with the US.

The three-month period gross domestic product expansion will establish the tone for a gathering of China's senior officials this week to examine the country's development plan covering the period between 2026 and 2030.

Key Financial Indicators

The 4.8% expansion in the third quarter represented a slowdown from the five point two percent recorded in the quarter concluding in mid-year.

China's statistical authority announced the economy demonstrated "remarkable durability and vitality" against external pressure, crediting growth in its tech industry and commercial services as key growth drivers.

The Chinese government has established a target of "around 5%" economic growth this calendar year and has thus far prevented a sharp downturn, supported by government support measures.

International Trade Situations

US President President Trump reacted promptly to China's controls on rare earths by proposing extra double duties on goods from the Asian nation.

US Treasury Secretary Secretary Bessent indicated he expects to meet Chinese officials this week in Southeast Asia in an effort to reduce friction and arrange a summit between the US President and his counterpart President Xi.

Prior to the recent flare-up, China's companies had taken advantage of the trade truce with Washington to ship goods to the American market, resulting in China's exports rising by 8.4% in last month.

Sector Results

The overall worth of imports to China was likewise up, while China's manufacturing production expanded by six point five percent last month from a year earlier.

Manufacturers in additive manufacturing, automation technology and EVs were among its best-performing sectors, while the service sector, which includes IT support, advisory firms, and transport and logistics, also showed expansion.

The Asian economy continues to show remarkable durability despite growing international trade pressures and internal financial recalibrations.