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The Chinese economic expansion decelerated during the quarter concluding in September as trade tensions with the United States escalated.

The global number two economy expanded by 4.8% compared to the same period in 2024, representing its weakest pace in a full year, according to official figures published on Monday.

This economic data surfaces following China's implementation of extensive restrictions on its exports of strategic minerals - essential elements for worldwide electronics production, a move that disrupted the fragile trade truce with the United States.

The third quarter gross domestic product growth will set the tone for a meeting of China's senior officials this week to discuss the nation's development plan covering the period between 2026 and 2030.

Important Financial Indicators

The 4.8% growth in the third quarter represented a slowdown from the five point two percent recorded in the quarter ending in mid-year.

China's statistical authority stated the economy demonstrated "strong resilience and dynamism" against international challenges, attributing growth in its tech industry and commercial services as primary expansion factors.

The Chinese government has established a goal of "around 5%" economic expansion this year and has so far avoided a significant decline, supported by state intervention policies.

International Trade Developments

American leader Donald Trump reacted swiftly to China's restrictions on critical minerals by threatening extra double duties on goods from the Asian nation.

US Treasury Secretary Scott Bessent indicated he anticipates to meet China's representatives this week in Malaysia in an effort to reduce friction and organize a summit between Trump and his Chinese equivalent Xi Jinping.

Before the recent escalation, China's companies had capitalized of the trade truce with the United States to ship goods to the US, resulting in China's overseas shipments rising by eight point four percent in last month.

Sector Results

The overall worth of imports to China was also up, while China's industrial output grew by six point five percent last month from a previous year.

Manufacturers in additive manufacturing, robotics and electric vehicles were among its best-performing sectors, while the service sector, which encompasses IT support, consultancies, and shipping companies, also experienced growth.

The Chinese economy continues to demonstrate remarkable resilience despite growing global trade pressures and internal economic adjustments.