In brief
China's economic growth has slowed to 4.8% in the third quarter of 2025, marking a decline from 5.2% in the previous quarter. This downturn occurs amid heightened trade tensions with the US, particularly following China's restrictions on rare earth exports. Despite government measures supporting the economy, the growth rate prompts discussions among China's leadership regarding future economic strategies.
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, its weakest pace in a year, official figures released on Monday show.
The data comes after China imposed sweeping controls on its exports of rare earths - minerals essential for the global production of electronics, a move that rocked its fragile trade truce with the US.
The third quarter gross domestic product (GDP) growth will set the tone for a gathering of China's top leaders this week to discuss the country's economic blueprint between 2026 and 2030.
The 4.8% growth in the third quarter marked a slowdown from 5.2% in the three months to July.
China's National Bureau of Statistics said the economy showed strong resilience and vitality against pressure. It credited momentum in its technology sector and business services as key growth drivers.
Beijing has set a goal of around 5% economic growth this year and has so far avoided a sharp downturn, helped by government support measures.
US President Donald Trump responded swiftly to China's controls on rare earths by threatening an additional 100% tariffs on imports from China.
US Treasury Secretary Scott Bessent said he expects to meet Chinese officials this week in Malaysia in a bid to ease tensions and set up a meeting between Trump and his counterpart Xi Jinping.
Before the recent flare-up, Chinese businesses had taken advantage of the trade truce with Washington to ship goods to the US, resulting in China's exports rising by 8.4% in September. The total value of imports to China was also up.
China's industrial output grew by 6.5% last month from a year earlier, with its 3D-printing, robotics and electric vehicles manufacturers among its strongest performers.
Its service sector, which includes IT support, consultancies, and transport and logistics companies, also grew.
