China Q3 growth hits 4.5% as AI exports offset weak demand

Official data released by Beijing shows that the world's second-largest economy expanded by 4.5% in the third quarter. This represents an acceleration from the previous period, though it remains at the lower end of the government's annual growth target range of 4.5% to 5%.

Analysts note that while the latest figures indicate resilience, the modest expansion provides policymakers with adequate room to address persistent domestic economic challenges without immediate overheating pressures.

Global demand for computer chips and essential components required for artificial intelligence data centres has emerged as a primary growth catalyst. This export surge has successfully eased pressure on Beijing by offsetting sluggish domestic consumption.

Stock photo for illustration only, not from the actual event

Despite strong overseas sales, the domestic property sector continues to struggle following years of overbuilding and excessive borrowing by private developers. Official figures revealed that property investment plunged by more than 20% in the first nine months compared to the same timeframe last year.

Oxford Economics researcher Sheana Yue pointed out that manufacturing and high-tech exports have effectively driven the nation's economic momentum despite weak domestic investment and retail spending.