China's Third-Quarter GDP Growth Hits 4.5 Percent
China's economy grew 4.5 percent in the third quarter, driven by a surge in tech exports despite a severe domestic property and consumption slump.
The National Bureau of Statistics of China reported that the economy grew by 4.5 percent in the third quarter of 2026, exceeding median economist forecasts of 4.4 percent. This acceleration from the 4.3 percent growth recorded in the second quarter brings the expansion for the first nine months of the year to 4.6 percent, placing the country within its official annual growth target of 4.5 to 5 percent.
Growth was primarily driven by a surge in exports of technological goods, AI infrastructure components, and green-tech products. September exports rose more than a third year-over-year, with shipments to the United States increasing by 40 percent. This export boom masks a severe domestic slump characterized by a prolonged housing market crash, where property investment plunged over 20 percent in the first nine months, and stagnant consumer spending.
To combat domestic weakness, the government implemented targeted support measures in September, including mortgage interest subsidies for homes up to 1.5 million yuan and the allocation of 550 billion yuan in debt quotas to support infrastructure. While these measures helped stabilize home prices in major cities like Shanghai, retail sales remained weak, rising only 1.1 percent in September.
Internationally, China maintains a trade truce with the United States following a September summit between Xi Jinping and Donald Trump. However, tensions persist with the European Union over hybrid-vehicle shipments, leading Beijing to agree to a cap on those exports. Simultaneously, China imposed new export restrictions on advanced solar technologies, biotech, and AI capable of developing malicious code, citing national security risks.
