China’s economic growth slows as trade tensions with US flare up


The latest growth figure marked a slowdown from the annual rate of 5.2% seen 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 and what – until recently – had been a trade ceasefire with Washington.

When China announced controls on rare earths earlier this month, US President Donald Trump responded swiftly by threatening an additional 100% tariffs on imports from China.

US Treasury Secretary Scott Bessent has said he expects to meet Chinese officials this week in Malaysia in an attempt 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.


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