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China's economic expansion slowed during the three months ending in September as trade tensions with the US escalated.

The global number two economy expanded by 4.8% compared to the equivalent timeframe in 2024, representing its weakest pace in a full year, according to official statistics published on the start of the week.

This economic data surfaces following China's implementation of extensive restrictions on its exports of rare earths - critical minerals for global electronics manufacturing, a move that rocked the delicate commercial ceasefire with the United States.

The third quarter gross domestic product growth will set the tone for a gathering of China's senior officials this week to discuss the country's economic blueprint covering the years between twenty twenty-six and twenty thirty.

Important Economic Metrics

The 4.8% growth in the third quarter signified a slowdown from the 5.2% recorded in the three months concluding in July.

China's statistical authority announced the economy displayed "strong resilience and vitality" against external pressure, crediting momentum in its technology sector and commercial services as primary growth drivers.

Beijing has set a goal of "around 5%" economic expansion this year and has thus far prevented a significant decline, assisted by state intervention policies.

International Trade Developments

American leader Donald Trump responded promptly to China's restrictions on critical minerals by proposing extra double duties on imports from the Asian nation.

American finance official Scott Bessent indicated he anticipates to meet Chinese officials this week in Southeast Asia in an effort to reduce friction and organize a meeting between Trump and his counterpart Xi Jinping.

Prior to the latest escalation, China's companies had taken advantage of the trade truce with the United States to export products to the American market, resulting in China's overseas shipments rising by eight point four percent in September.

Sector Results

The overall worth of foreign goods to China was likewise higher, while China's manufacturing production grew by six point five percent last month from a year earlier.

Manufacturers in additive manufacturing, robotics and EVs were among its strongest performers, while the service sector, which encompasses IT support, advisory firms, and shipping companies, also experienced growth.

The Asian economy continues to demonstrate significant resilience despite growing international trade pressures and internal economic adjustments.