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China’s economic growth slowed in the three months to the end of September as trade tensions with the US flared up.
The world’s second-largest economy grew by 4.8% compared to the same period in 2024, its weakest pace in a year, official figures released on Monday show.
The data comes after China imposed sweeping controls on its exports of rare earths – minerals essential for the global production of electronics, a move that rocked its fragile trade truce with the US.
The third quarter gross domestic product (GDP) growth will set the tone for a gathering of China’s top leaders this week to discuss the country’s economic blueprint between 2026 and 2030.
The 4.8% growth in the third quarter marked a slowdown from 5.2% in the three months to July.
China’s National Bureau of Statistics said the economy showed “strong resilience and vitality” against pressure . It credited momentum in its technology sector and business services as key growth drivers.
Beijing has set a goal of “around 5%” economic growth this year and has so far avoided a sharp downturn, helped by government support measures.
US President Donald Trump responded swiftly to China’s controls on rare earths by threatening an additional 100% tariffs on imports from China.
US Treasury Secretary Scott Bessent said he expects to meet Chinese officials this week in Malaysia in a bid to ease tensions and set up a meeting between Trump and his counterpart Xi Jinping.
Before the recent flare-up, Chinese businesses had taken advantage of the trade truce with Washington to ship goods to the US, resulting in China’s exports rising by 8.4% in September. The total value of imports to China was also up.
China’s industrial output grew by 6.5% last month from a year earlier, with its 3D-printing, robotics and electric vehicles manufacturers among its strongest performers.
Its service sector, which includes IT support, consultancies, and transport and logistics companies, also grew.
