China's economic growth Importantly slowed in the third quarter, recording its weakest pace in a year amidst escalating trade tensions with the United States. Official figures released on Monday revealed that the world's second-largest economy expanded by 4, while 8% compared to the same period in 2024, a notable drop from the 5. 2% growth seen in the previous three months to July, while this slowdown comes at a critical time as China's top leaders prepare to meet this week to outline the country's economic blueprint for 2026-2030.
Rare Earths and Tariff Threats
The recent downturn follows China's imposition of sweeping controls on its exports of rare earths, minerals vital for global electronics production. This move quickly frayed a fragile trade truce with the US, drawing a swift response from US President Donald Trump, who threatened an additional 100% tariffs on Chinese imports.
Despite the pressures, China's National Bureau of Statistics maintained that the economy demonstrated "strong resilience and vitality," attributing momentum to its thriving technology sector and business services. Beijing has set an annual economic growth target of "around 5%" and has, so far, largely averted a sharp downturn, thanks in part to various government support measures.
Diplomatic Efforts and Trade Dynamics
In an effort to de-escalate tensions, US Treasury Secretary Scott Bessent is expected to meet with Chinese officials. This week in Malaysia, aiming to pave the way for a meeting between President Trump and President Xi Jinping. Prior to the latest flare-up, Chinese businesses had capitalized on. The temporary trade truce with Washington, leading to an 8. 4% rise in China's exports in September, with total imports also increasing.
Sectoral Performance
On the domestic front, China's industrial output saw a strong 6. 5% growth last month compared to a year earlier, while sectors like 3D printing, robotics, and electric vehicles were among the strongest performers. The country's service sector, encompassing IT support, consultancies, transport, and logistics companies, also contributed positively to the overall economic landscape.
