China’s economy grew at an annual rate of 4.8% in the July–September quarter, marking its slowest pace in a year, the government reported Monday. The slowdown, compared to 5.2% growth in the previous quarter, was driven by persistent trade tensions with the U.S., weakened domestic demand, and a downturn in the property market.
The 4.8% figure is the weakest since Q3 of 2024, though China’s economy still posted 5.2% growth over the first nine months of 2025. Despite U.S. President Donald Trump’s tariff hikes on Chinese imports, exports remained relatively resilient, helped by companies diversifying into other global markets.
Political uncertainty also looms, as it remains unclear whether Trump and Chinese President Xi Jinping will meet at a planned summit later this month. Meanwhile, Xi and Communist Party leaders began a key policy meeting Monday to chart China’s next five-year economic and social plan.
China’s challenges include aggressive price competition in overcapacity-hit sectors like autos and an ongoing property crisis. Ratings agency S&P projects new home sales to decline by 8% in 2025.
While China has some buffer from earlier growth, analysts are watching for additional stimulus measures, with a possible central bank rate cut expected by year-end.
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