China's economy expanded by 4.5% in the three months to the end of September, up from 4.3% in the previous quarter, according to official Chinese data. The rebound came as global demand for computer chips and components used in artificial intelligence data centres boosted exports, offsetting weak consumer spending at home.
The growth figure sits at the bottom of Beijing's annual target range of 4.5%-5%, giving policymakers room to address economic challenges, analysts said. China's National Bureau of Statistics said the economy 'sustained steady development against pressure' and showed 'momentum with new growth drivers and improving structure'.
Exports are performing so strongly that China's trade surplus is on track to exceed last year's record of $1.2 trillion. However, property investment fell more than 20% in the first nine months compared with the same period last year, reflecting a prolonged slump in the sector after years of overbuilding and excessive borrowing by developers.
Weak wage growth, high youth unemployment and the property crisis have all weighed on consumer spending. In September, Beijing rolled out support measures including lower interest rates for some businesses and subsidies for property buyers to try to revive the economy. The government is also facing pressure from Western economies over cheap Chinese exports flooding global markets.
Concerns remain about the billions being spent on AI infrastructure and whether companies making those investments can deliver on their profit promises.