China’s economic growth experienced a slowdown in the third quarter ending September, with a reported growth rate of 4.8% compared to the same period in 2024, marking the weakest pace in a year, according to official figures. This decline follows increased trade tensions with the United States, particularly after China imposed export controls on rare earth minerals, which are essential for global electronics production.
The 4.8% growth reflects a decrease from the 5.2% growth rate in the previous quarter, which raises concerns about potential long-term impacts on the economy. The National Bureau of Statistics of China noted that the economy displayed “strong resilience and vitality,” attributing continued growth to advancements in the technology sector and the business services industry. The Chinese government has aimed for an economic growth target of “around 5%” for the year and has largely avoided a significant downturn through various supportive measures.
In response to China’s export restrictions, U.S. President Donald Trump threatened to impose an additional 100% tariff on imports from China. Meanwhile, U.S. Treasury Secretary Scott Bessent indicated plans to meet with Chinese officials in Malaysia to discuss easing tensions and potentially establishing a meeting between Trump and Chinese President Xi Jinping.
Prior to these developments, Chinese businesses had leveraged a trade truce with the U.S. to increase exports, which rose by 8.4% in September. Alongside this, imports to China also saw an upward trend. Additionally, China’s industrial output grew by 6.5% year-on-year in the last month, with strong performance noted in sectors such as 3D printing, robotics, and electric vehicles, as well as growth in the service industry encompassing IT support, consultancy, and logistics.
Source: https://www.bbc.com/news/articles/c9v1medkk3vo?at_medium=RSS&at_campaign=rss