China's Q3 GDP Grows 4.5%, Beating Forecasts on Export Surge
China's economy expanded faster than expected in Q3, driven by electronics exports tied to surging global AI demand.
China's economy grew at a faster-than-anticipated pace in the third quarter of 2025, with gross domestic product expanding 4.5% year-on-year between July and September, according to data released Monday by the National Bureau of Statistics of China.
The result topped economist forecasts and marked an acceleration from the 4.3% growth recorded in the second quarter. The improvement was driven largely by robust export activity, particularly in electronics, as global demand tied to the artificial intelligence boom continued to boost Chinese industrial output.
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Factory production outpaced consumer spending by a significant margin during the period, underscoring a persistent imbalance in China's recovery — one in which external demand is doing heavier lifting than domestic consumption. Electronics manufacturers appear to be among the clearest beneficiaries as technology companies worldwide ramp up AI infrastructure investment.
The stronger-than-expected reading offers Beijing a degree of breathing room as policymakers navigate trade pressures and a still-fragile property sector. However, analysts have cautioned that dependence on export-driven growth carries risks, particularly if global demand softens or trade friction escalates in key markets.
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