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The Chinese economic expansion decelerated during the three months ending in the end of September as trade tensions with the United States escalated.

The world's second-largest economy grew by 4.8% compared to the equivalent timeframe in 2024, representing its slowest rate in a full year, according to official figures released on Monday.

This financial information emerges following China's enforcement of extensive restrictions on its shipments of rare earths - essential elements for worldwide electronics manufacturing, a decision that rocked the delicate commercial ceasefire with the US.

The three-month period gross domestic product expansion will set the tone for a gathering of China's senior officials this week to examine the country's economic blueprint covering the years between 2026 and twenty thirty.

Key Economic Indicators

The four point eight percent growth in the July-September period signified a reduction from the five point two percent recorded in the three months concluding in July.

China's National Bureau of Statistics announced the economy demonstrated "strong resilience and dynamism" against international challenges, crediting momentum in its tech industry and business services as primary growth drivers.

Beijing has established a goal of "approximately five percent" economic expansion this year and has thus far prevented a sharp downturn, supported by government support measures.

International Trade Situations

US President Donald Trump reacted swiftly to China's controls on rare earths by proposing extra 100% tariffs on imports from China.

US Treasury Secretary Secretary Bessent indicated he expects to meet China's representatives this coming days in Malaysia in an attempt to ease tensions and organize a meeting between the US President and his counterpart Xi Jinping.

Prior to the recent flare-up, Chinese businesses had taken advantage of the commercial ceasefire with the United States to ship goods to the American market, resulting in China's overseas shipments increasing by eight point four percent in September.

Industry Results

The total value of imports to the country was also higher, while China's manufacturing production expanded by 6.5% last thirty-day period from a year earlier.

Manufacturers in additive manufacturing, robotics and EVs were among its best-performing sectors, while the service sector, which includes IT support, consultancies, and shipping companies, also showed expansion.

The Asian economy continues to show remarkable durability despite increasing global trade pressures and internal economic adjustments.