🔗 Share this article

China's economic expansion slowed during the quarter concluding in September as trade tensions with the United States intensified.

The world's second-largest economy grew by 4.8% compared to the same period in the previous year, representing its weakest pace in a full year, according to official figures released on the start of the week.

This economic data surfaces following China's implementation of comprehensive controls on its exports of strategic minerals - critical elements for worldwide electronics production, a move that rocked the delicate trade truce with the US.

The third quarter gross domestic product growth will set the atmosphere for a meeting of China's senior officials this week to examine the country's economic blueprint covering the years between 2026 and 2030.

Key Financial Indicators

The 4.8% expansion in the third quarter signified a slowdown from the five point two percent registered in the three months ending in mid-year.

China's National Bureau of Statistics announced the economy demonstrated "remarkable durability and dynamism" against external pressure, crediting growth in its tech industry and business services as key growth drivers.

The Chinese government has established a target of "approximately five percent" economic growth this calendar year and has so far avoided a significant decline, supported by government support measures.

Global Commercial Developments

American leader President Trump reacted promptly to China's restrictions on rare earths by proposing extra 100% tariffs on goods from China.

American finance official Secretary Bessent indicated he expects to meet China's representatives this week in Southeast Asia in an attempt to ease tensions and arrange a meeting between the US President and his Chinese equivalent President Xi.

Before the latest flare-up, China's companies had capitalized of the trade truce with the United States to export products to the American market, resulting in China's exports rising by eight point four percent in September.

Sector Performance

The overall worth of foreign goods to China was also up, while China's industrial output grew by six point five percent last month from a previous year.

Manufacturers in 3D-printing, automation technology and electric vehicles were among its best-performing sectors, while the services industry, which encompasses technology services, advisory firms, and transport and logistics, also showed expansion.

The Asian economy continues to show significant resilience despite growing international trade pressures and domestic financial recalibrations.