China economy grows 4.5% in third quarter of 2026

China's economy grew 4.5% year-on-year in the third quarter of 2026, according to data from the National Bureau of Statistics. This represents an increase from the 4.3% growth recorded in the second quarter.

The expansion was largely driven by external demand for high-tech products, specifically semiconductors, data center equipment, and components related to artificial intelligence infrastructure. This high-tech manufacturing sector has acted as a primary engine for growth, helping the economy stay within its official annual growth target range of 4.5% to 5.0%.

However, domestic challenges persist. The economy is experiencing a “two-speed” dynamic where a strong export sector contrasts with weak domestic consumption and a continuing real estate crisis. Fixed asset investment fell 7.2% in the first nine months of the year, while real estate investment saw a significant decline of 20.2%, indicating that the construction sector has not yet stabilized.