China's Q3 GDP grew 4.5% year-on-year, driven by robust exports, but economists warn that relying on foreign demand is unsustainable and risks dragging on global growth.
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01Summary
- 01China's economy expanded 4.5% in July-September from a year ago, up from 4.3% in the previous quarter.
- 02Exports rose 36% in September, and the trade surplus reached $938 billion in the first nine months of 2025.
- 03The EU runs a daily trade deficit of over $1.1 billion with China; exports to the bloc rose 16% in January-September.
- 04Cornell professor Eswar Prasad said China's export reliance is 'untenable and unsustainable' and a 'drag on world growth'.
- 05China's central bank governor Pan Gongsheng said the country is committed to expanding domestic demand.
02Why it matters
This matters because China's export surge is straining trade relations with the EU and others, potentially leading to more tariffs and protectionist measures that could affect global supply chains and consumer prices.
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