China's economic growth picks up as AI boom boosts exports
Exports have helped offset weak domestic spending, but trade tensions and AI doubts weigh on the outlook.
China's economic growth rebounded in the third quarter, growing by 4.5% as the artificial intelligence boom helped boost exports. The world's second largest economy managed to exceed its annual growth target of 4.5%-5% for the year, though this figure marked the lowest expansion rate since 2020. The slowdown in domestic spending was offset by strong exports, which have been bolstered by high demand for computer chips and other components used in AI data centers.
This has helped to ease the pressure on Beijing and cushion the impact of weak domestic consumption. In September, the Chinese government unveiled a package of support measures, including lower interest rates and subsidies for property buyers, in an effort to stimulate the economy. However, Beijing faces criticism from Western economies like the US and the European Union due to the abundance of cheap Chinese goods and concerns over the billions spent on AI infrastructure.
Analysts remain uncertain about whether companies investing in AI can generate significant profits, adding to the uncertainty surrounding China's economic outlook.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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