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 accelerated in the third quarter, driven by a surge in artificial intelligence (AI) exports, according to official data. The economy expanded by 4.5% in the July-September period, up from 4.3% in the previous quarter, but still below the 5% target set by Beijing for the year. The strengthening export sector helped offset weak domestic spending, though global trade tensions and uncertainty surrounding AI investments cast a shadow over the outlook.
Despite the economic rebound, the trade surplus, which measures the balance of goods and services exported versus imported, is expected to surpass the previous record of $1.2tn. However, the property sector, which has been grappling with overbuilding and excessive borrowing, saw a more than 20% drop in investment over the first nine months compared to the same period last year.
Meanwhile, China's property slump, fueled by years of overinvestment and borrowing, has been a persistent challenge for the nation's economy. In an attempt to stimulate growth, Beijing introduced measures such as lower interest rates for certain businesses and subsidies for property buyers in September. Nonetheless, the country is facing pressure from Western economies, particularly the US and EU, as Chinese manufacturers struggle to compete with low-cost goods.
Additionally, concerns persist over the billions spent on AI infrastructure, with doubts about whether these investments will yield substantial profits.
Written by urgent.news from BBC Technology's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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