China's GDP Grows 4.5% in Third Quarter on Export Strength, Domestic Demand Lags

China's economy expanded 4.5% in the July-September quarter from a year earlier, beating expectations and accelerating from 4.3% in April-June, as robust exports offset persistent domestic weakness and moved Beijing closer to its 2026 growth target of 4.5%-5%. Exports remain a bright spot. After a 36% jump in exports last month and a $938 billion surplus for January-September, China is on course to exceed last year's record $1.2 trillion trade surplus, led by semiconductors and hybrid and electric vehicles. Passenger vehicle exports topped 7.1 million units in the first nine months, up more than 70% year-over-year. Domestic demand has softened, weighed down by a years-long property slump that has eroded household wealth and pushed up savings. Analysts cautioned the headline figure masks widening disparities. "It hides widening disparities across industries, regions, and households," said Max Zenglein of The Conference Board, noting that managing domestic imbalances may prove harder for Beijing than handling outside pressures. Trade tensions persist: the EU runs a daily deficit with China exceeding $1.1 billion, and Chinese exports to the bloc rose 16% in the first nine months of the year.