Esther Imonmion
China’s economic growth has slowed amid renewed trade tensions with the United States, according to data released by the country’s National Bureau of Statistics on Monday, October 20.
The latest figures show the economy expanded at a slower pace than the 5.2% annual rate recorded in the three months to July. Despite the dip, officials described the economy as showing “strong resilience and vitality,” citing the technology and business services sectors as key growth drivers.
Beijing has set an annual growth target of “around 5%” and has so far avoided a sharp downturn, supported by government stimulus measures and, until recently, a fragile trade truce with Washington.
Earlier this month, China announced export controls on rare earths — critical materials for high-tech industries — prompting a swift response from US President Donald Trump, who threatened an additional 100% tariff on Chinese imports.
US Treasury Secretary Scott Bessent is expected to meet Chinese officials in Malaysia this week in a bid to defuse tensions and pave the way for a meeting between Presidents Trump and Xi Jinping.
Before the latest flare-up, Chinese exporters had taken advantage of the trade ceasefire, with exports rising by 8.4% in September. Imports also increased, while industrial output grew by 6.5% year-on-year, driven by strong performances in 3D printing, robotics, and electric vehicle manufacturing.
China’s service sector — including IT, consultancy, transport, and logistics — also showed steady expansion. Analysts said rising exports had helped offset weak domestic spending.
To boost consumption, Beijing has rolled out subsidies, wage increases, and discounts. However, Oxford Economics senior economist Sheana Yue warned that growth is unlikely to exceed 4.8% this year without additional government intervention, which may be addressed in the upcoming Five-Year Plan.
The property sector remains a major concern. Real estate investment fell 13.9% in the year to September as the housing market continues to slump. Falling home prices, shrinking sales, and abandoned projects have deepened the crisis in a sector that contributes about a third of China’s GDP.
Economics lecturer Laura Wu of Nanyang Technological University noted that despite state support, housing “is still the major drag on China’s economic growth,” compounding pressures from renewed US tariffs and trade barriers.