China Economy Expands 1.1% QoQ in Q3

China’s GDP grew 1.2% quarter-on-quarter in Q4 2025, beating market expectations of 1.0% and following a 1.1% increase in Q3, logging the fastest expansion in three quarters. The latest reading reflected sustained policy support from Beijing alongside efforts to curb excess industrial capacity and rein in aggressive price competition. Leaders in December pledged to maintain a proactive fiscal stance for this year, with the statistics bureau calling for stronger macro policies and expanded domestic demand. Authorities also vowed to strongly lift household consumption’s share of the economy over the next five years. On the monetary front, the PBoC continued to keep liquidity ample, guiding borrowing costs lower, and providing cross-cyclical support without resorting to excessive stimulus. Recent measures included sector-specific lending rate cuts, signals of possible reserve-requirement and broader rate reductions, and steps to stabilize capital markets against mounting headwinds.

China’s GDP grew 1.1% quarter-on-quarter in Q3 2025, beating market expectations of 0.8% and following a marginally revised 1.0% gain in Q2. The stronger-than-expected performance reflects Beijing’s policy support, including liquidity injections to stabilize credit markets and curb deflationary pressures amid weak demand. The central bank also signaled plans to cut rates “at an appropriate time” to boost lending and investment further. However, renewed U.S.-China trade tensions underscore vulnerabilities in China’s export-driven economy, with President Trump threatening tariffs of up to 100% on Chinese goods from November 1, though both sides have expressed willingness to ease disputes. China’s statistics agency noted that external uncertainties, weak domestic demand, and operational strains among firms continue to challenge economic stability. A spokesperson said the Chinese economy is like “a vast ocean, not a small pond, capable of withstanding storms and even tempests.”

China’s GDP grew by a seasonally adjusted 1.1% in Q2 2025, beating market forecasts of 0.9% despite slowing slightly from a 1.2% increase in Q1. The stronger-than-expected result reflected the positive effect of a series of policy support measures from Beijing, including interest rate cuts and increased liquidity injections to support the tariff-hit economy. In May, China and the U.S. agreed to a trade truce, committing to roll back most tariffs. A follow-up meeting in London in June produced a framework that included Beijing expediting approvals for rare-earth exports and Washington easing curbs on advanced technology access and student visas for Chinese nationals. Still, with an August 12 tariff deadline looming, Beijing faces pressure to reach a more permanent deal. Meanwhile, China’s statistics agency noted the economy maintained steady growth with solid momentum, highlighting its resilience, but warned of rising external uncertainties and continued weakness in domestic demand.