China’s economy grew 4.8% year-on-year in the July–September quarter, marking its slowest pace in a year as trade tensions with the United States and subdued domestic demand weighed on activity.

The latest figures, released Monday, represent a decline from the 5.2% growth recorded in the previous quarter and the weakest performance since the third quarter of 2024. Over the first nine months of 2025, the world’s second-largest economy expanded at an average annual rate of 5.2%.

Despite higher U.S. tariffs imposed by President Donald Trump, Chinese exports remained resilient, buoyed by increased sales to other global markets. Exports to the U.S., however, plunged 27% in September compared to a year earlier, even as overall exports rose 8.3% — the strongest growth in six months.

Exports of electric vehicles doubled year-on-year in September, while domestic passenger car sales climbed 11.2%, slower than August’s 15% rise.

China’s slowdown has also been driven by government efforts to rein in price wars in industries such as autos, alongside a prolonged property market slump that continues to drag on consumer spending and investment. Residential property sales by value fell 7.6% in the January–September period, while industrial output rose 6.5% in September — the fastest pace since June. Retail sales growth, however, eased to 3%.

Taiwan’s TSMC reports nearly 40% jump in net profit on AI boom

S&P forecasts that new home sales will drop 8% in 2025 and another 6–7% in 2026. The World Bank expects China’s economy to grow 4.8% this year, slightly below the government’s target of “around 5%.”

China’s stock markets rose Monday, with Hong Kong’s Hang Seng Index gaining 2.3% and the Shanghai Composite up 0.5%.

Economists said Beijing may introduce more policy support to boost consumption and stabilize the property sector, with some anticipating an interest rate cut by year-end.

Source: AP