China Economy Gains Momentum With Surge in AI Investment

The Government of China reported improving economic momentum during the third quarter of 2026, supported by recoveries in consumption, trade, and investment. High-frequency data released by the State Information Center shows that offline consumption payments rose 2.6 percent year on year in the third quarter, with growth accelerating to 3.1 percent in September.

Trade activity increased significantly, evidenced by a 43.1 percent year-on-year rise in cargo ship departures from major ports. Manufacturing also returned to expansionary territory in September, recording a purchasing managers' index of 50.1. Fiscal activity strengthened as the issuance of new special-purpose bonds rose 50.2 percent in September.

Investment in frontier sectors saw the most dramatic growth, with capital directed toward artificial intelligence and humanoid robots surging 184.1 percent year on year during the third quarter. These developments follow a 4.7 percent GDP growth rate in the first half of the year, as the government works toward a full-year 2026 growth target of 4.5 to 5 percent.