China's economic growth picks up as AI boom boosts exports
Summary
China’s economy grew by 4.5% in the third quarter of 2026, slightly improving from earlier in the year. This growth was helped by a rise in exports linked to the artificial intelligence (AI) industry, even though domestic spending remained weak.Key Facts
- China’s economy grew 4.5% in July to September 2026, up from 4.3% in the previous quarter.
- This growth rate is at the lower end of Beijing’s annual target of 4.5%-5%.
- Exports increased due to global demand for AI-related technology, like computer chips and data center parts.
- China’s trade surplus is expected to surpass last year’s record of $1.2 trillion.
- Domestic problems include a property market slump with a 20% drop in investment and weak consumer spending.
- The government introduced support measures, such as lower interest rates and subsidies for homebuyers, to boost the economy.
- Western countries, including the US and the EU, have criticized China because its cheap exports hurt their manufacturers.
- There is uncertainty about whether the large investments in AI infrastructure will lead to big profits.
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