Osmond ChiaBusiness reporter
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The 4.8% growth in the third quarter marked a slowdown from 5.2% in the three months to July
China’s economic growth slowed in the three months to the end of September as problems in the property market persisted and 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 growth figures will set the tone for a gathering of China’s top leaders this week to discuss the country’s economic blueprint over the next five years.
The latest growth figure marked a slowdown from the annual rate of 5.2% seen 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 and what – until recently – had been a trade ceasefire with Washington.
When China announced controls on rare earths earlier this month, US President Donald Trump responded swiftly by threatening an additional 100% tariffs on imports from China.
US Treasury Secretary Scott Bessent has said he expects to meet Chinese officials this week in Malaysia in an attempt 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.
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China has been struggling with a property crisis since 2021
The latest data shows that China’s exports have helped to offset its “sluggish” domestic spending, according to Sheana Yue, senior economist at Oxford Economics.
Beijing has spent billions on incentives such as subsidies, higher wages and discounts to encourage locals to spend more and lift its economy.
However, Ms Yue said it was unlikely China’s economic growth this year would exceed 4.8% without further government support, which could come with the new Five-Year Plan laying out Beijing’s economic goals.
China’s property sector also continued to struggle as real estate investment fell 13.9% in the year up to September.
The housing market is going through a sharp downturn, marked by falling home prices, shrinking sales and instances of developers abandoning their projects.
The real estate sector accounts for about a third of the Chinese economy and has been a major source of income for local governments.
Home prices have fallen in almost every major city despite government support measures, said economics lecturer Laura Wu from Nanyang Technological University.
In the long-run, housing “is still the major drag on China’s economic growth” even as it faces uncertainty from Washington’s tariffs and other trade barriers, said Prof Wu.
