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, marking its weakest pace in a year, official figures released on Monday show.
This data comes after China imposed sweeping controls on its exports of rare earths—minerals essential for global electronics production—rocking its fragile trade truce with the US.
The third quarter's gross domestic product (GDP) growth sets the tone for a gathering of China's top leaders this week to discuss the country's economic blueprint from 2026 to 2030.
The reported 4.8% growth marks a decline from 5.2% in the three months to July.
China's National Bureau of Statistics acknowledged strong resilience and vitality against external pressures, citing momentum in the technology sector and business services as key growth drivers.
The Chinese government aims for around 5% economic growth this year and has thus far avoided a significant downturn, aided by supportive measures.
In response to China's controls on rare earths, US President Donald Trump threatened to impose an additional 100% tariff on imports from China.
US Treasury Secretary Scott Bessent mentioned plans to meet Chinese officials this week in Malaysia to ease tensions and facilitate a meeting between Trump and President Xi Jinping.
Prior to the recent escalation, Chinese businesses had leveraged the trade truce with the US, resulting in an 8.4% increase in exports in September, accompanied by a rise in imports.
China's industrial output also saw a robust 6.5% growth last month, with sectors like 3D printing, robotics, and electric vehicles leading the performance.
The service sector, encompassing IT support, consultancies, and transport and logistics companies, also reported notable growth.
