China's economic growth slows to one-year low in Q3 amid trade war

Economy expands 4.8% year on year in July-Sept period, down from Q2's 5.2% pace

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Shoppers at a street market in Beijing on Oct 16. China's sluggish domestic market remains a drag for businesses, with Oct 20 data showing retail sales slowing to a 10-month low.

(PHOTO: AFP)

China's economic growth slowed to the weakest pace in a year in the third quarter as fragile domestic demand left it heavily reliant on manufacturing production and exports, stoking concerns about deepening structural imbalances.

The economy grew 4.8 per cent year on year in the July-to-September period, slowing from the 5.2 per cent pace in the second quarter but in line with a Reuters poll forecast.

For January to September, the economy expanded 5.2 per cent, National Bureau of Statistics data showed, suggesting full-year growth is on track to hit Beijing's target of around 5 per cent.

"With China on track to hit this year's growth target, we could see less policy urgency," said Mr Lynn Song, chief economist for Greater China at ING.

"But weak confidence translating to soft consumption, investment, and a worsening property price downturn still need to be addressed," he added.

Beijing may be using the headline resilience in growth as a show of strength in upcoming talks between Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent in Malaysia this week, and a potential meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in South Korea later.