China’s economy expanded at a slower pace in the third quarter, weighed down by continued weakness in the property sector and renewed friction in trade relations with the U.S., according to the BBC.
Official data released Monday showed China’s GDP rising 4.8% year-on-year in the three months ending September — the country’s slowest growth rate in a year and a decline from 5.2% recorded in the previous quarter.
The slowdown follows Beijing’s recent decision to impose broad restrictions on exports of rare earth minerals, key components in the global electronics supply chain. The move has intensified tensions with the U.S. after a period many described as a ceasefire in the trade war between the two largest economies in the world.
In response to Beijing’s export restrictions, U.S. President Donald Trump threatened to introduce 100% tariffs on Chinese imports. The announcement rattled markets and raised concerns about a potential return to the trade battles that characterized earlier years.
Before tensions escalated, Chinese exporters benefited from a period of relative calm between the two countries, with shipments to the U.S. increasing by 8.4% in September. Imports into China, including luxury products, also rose during the same period, suggesting domestic demand had shown signs of stabilization prior to the renewed strain in relations.
