China’s economy grew 4.5% last quarter, yet its export boom risks being ‘a drag on world growth’

China on Monday said its economy grew 4.5% for the July-September quarter from a year ago fueled by robust exports, moving closer to meeting its official annual growth target as the year nears its end and at a time when its trading partners felt an increased urgency in balancing their trade deficits with the country.

The better-than-expected official data accelerated from the 4.3% year-on-year growth recorded in the April-June quarter, which was the slowest expansion in more than three years.

For the whole year, Chinese leaders have set a growth target of 4.5%-5%, down from last year’s 5% expansion. Earlier this month, the International Monetary Fund trimmed its forecast for China’s 2026 economic growth to 4.5%, just meeting the lower end of Beijing’s goal.

Strong exports lift economic growth, but domestic sluggishness remains

The headline official growth figure is becoming “an increasingly poor indicator of how the broader economy is performing,” said Max Zenglein, Asia Pacific senior economist at The Conference Board.

That’s because it masks “widening disparities across industries, regions, and households,” Zenglein said. Beijing faces difficult trade-offs and managing domestic imbalances may prove more challenging than dealing with external pressures, he said.

China’s........

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