China's Export Dependency Raises Concerns Amid Slowed Economic Growth

China's economic growth slowed to its weakest pace in a year due to fragile domestic demand, heavily relying on exports. Despite meeting growth expectations, concerns persist about structural imbalances. The economy's dependence on external demand amid U.S. trade tensions and challenges in domestic consumption highlight sustainability risks.

China's economy experienced its slowest growth in a year during the third quarter, as fragile domestic demand increased reliance on exports. This raised concerns about deepening structural imbalances. Despite a 4.8% growth rate meeting expectations, concerns over trade tensions with Washington question the sustainability of this pace.

Beijing may use the resilient growth figures to show strength in upcoming talks between Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent. However, export strength masks domestic weaknesses, forcing manufacturers to prioritize price competition abroad, impacting profitability and leading to wage cuts and job losses at home.

Industrial output saw improvement, but retail sales and property investment figures highlighted domestic demand challenges. Calls for structural changes to enhance household consumption grow louder ahead of a crucial Communist Party meeting discussing China's five-year development plan, as the country navigates trade tensions with the U.S.

(With inputs from agencies.)