China's growth accelerates as AI export boom outweighs domestic weakness

Image source, VCG via Getty ImagesByOsmond ChiaBusiness reporterPublished19 October 2026, 03:03 BSTUpdated 40 minutes agoChina's economic growth picked up in the three months to the end of September, rebounding from a three-year low as the artificial intelligence (AI) boom helped boost exports.

The world's second largest economy grew by 4.5% in the third quarter, up from 4.3% in the previous period but below the 5% expansion recorded from January to March, according to official Chinese data.

The latest figure is at the bottom end of Beijing's annual growth target of 4.5%-5%, which analysts have said gives policymakers room to address the country's economic challenges.

Exports have helped offset weak spending at home, but global trade tensions and uncertainty over AI investments are clouding its outlook.

China's National Bureau of Statistics said on Monday that the economy "sustained steady development against pressure" and showed "momentum with new growth drivers and improving structure".

With exports climbing, China's trade surplus - the amount of goods and services it sells abroad compared to what it buys from other countries - is on track to overtake the record $1.2tn (£900bn) seen last year.

But property investment fell by more than 20% in the first nine months from the same period last year, official data also showed.

Oxford Economics researcher Sheana Yue said manufacturing and high-tech exports have boosted China's growth, despite weak investment and domestic spending.

China's economy has struggling to shake off a long-running property slump, after years of overbuilding and excessive borrowing by private developers.

Trade uncertainties and geopolitical issues have also made Chinese consumers more "pessimistic" and unwilling to spend, she added.

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The technology industry has been a key driver of China's growth in recent quarters.