Official data shows China's economy rebounded in the third quarter, growing at 4.5% year-on-year, up from a three-year low. This growth is largely attributed to a surge in exports, driven by the artificial intelligence boom. While the figure aligns with Beijing's annual growth target, analysts note it leaves room for further stimulus measures to address ongoing economic challenges.
The National Bureau of Statistics highlighted that the economy 'sustained steady development against pressure,' emphasizing new growth drivers like high-tech exports. Sales of advanced goods rose 14.3%, and production of batteries and industrial robots increased by over 29%. However, domestic investment and consumer spending remain sluggish, with property investment dropping more than 20% year-to-date.
Despite these challenges, China's trade surplus is on track to surpass last year's record of $1.2 trillion. Yet, concerns persist over reliance on exports as a single growth engine. Global trade tensions and geopolitical issues have dampened consumer confidence, making it harder for businesses to boost domestic demand. Analysts warn that while AI investments are easing some pressures, the long-term viability of these projects remains uncertain.
Beijing has introduced targeted support measures, including lower interest rates and property subsidies, to stimulate the economy. However, these efforts face resistance from Western economies, which are struggling to compete with cheap Chinese goods. The government's focus on AI infrastructure also raises questions about whether such investments will yield the promised returns.
Overall, the data suggests a mixed picture: growth is picking up, but structural challenges and external risks continue to cloud the outlook.