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The Chinese economic growth decelerated during the three months concluding in the end of September as trade tensions with the US escalated.

The world's second-largest economy expanded by 4.8% compared to the same period in 2024, representing its slowest rate in twelve months, according to official statistics published on the start of the week.

This economic data emerges following China's enforcement of extensive restrictions on its exports of rare earths - critical minerals for worldwide technology manufacturing, a decision that disrupted the fragile trade truce with the US.

The three-month period gross domestic product expansion will establish the atmosphere for a meeting of China's senior officials this week to discuss the nation's development plan covering the years between twenty twenty-six and twenty thirty.

Important Financial Metrics

The 4.8% expansion in the third quarter signified a reduction from the 5.2% recorded in the three months concluding in mid-year.

China's National Bureau of Statistics stated the economic system displayed "strong resilience and dynamism" against international challenges, crediting growth in its tech industry and commercial services as key expansion factors.

The Chinese government has established a target of "approximately five percent" economic growth this calendar year and has so far avoided a sharp downturn, assisted by government support measures.

International Trade Situations

American leader President Trump reacted promptly to China's restrictions on rare earths by proposing additional 100% tariffs on goods from China.

US Treasury Secretary Secretary Bessent indicated he expects to confer with Chinese officials this coming days in Southeast Asia in an attempt to reduce friction and organize a summit between the US President and his Chinese equivalent Xi Jinping.

Before the recent escalation, China's companies had capitalized of the trade truce with Washington to export products to the American market, resulting in China's overseas shipments increasing by 8.4% in last month.

Industry Results

The total value of foreign goods to China was also up, while China's manufacturing production grew by six point five percent last month from a year earlier.

Manufacturers in additive manufacturing, automation technology and EVs were among its strongest performers, while the service sector, which includes technology services, consultancies, and transport and logistics, also showed expansion.

The Chinese economy continues to show significant durability despite growing global trade pressures and domestic economic adjustments.