China’s economy grew faster than expected in the third quarter thanks to the country’s powerful export machine, with domestic consumption still lagging and the authorities showing little interest in fiscal stimulus. The latest figures put the world’s second-biggest economy on track for the government’s 4.5-5% GDP growth target for 2026, but cemented the growing gulf between iffy domestic demand and surging sales abroad: “It’s too competitive and there’s no profit,” one motorbike parts executive told Reuters of the Chinese market.
Though broadly upbeat, the data will likely amplify calls abroad for Beijing to do more to stoke consumption, with growing political frustration — particularly in the West — over what critics say is China’s overcapacity hollowing out industries in other countries.
