China's GDP grew by 4.5% year-over-year between July and September, helped by a boom in exports brought on by demand for artificial intelligence technology.

The Guardian reports that the 4.5% growth in GDP for the third quarter came in ahead of the 4.3% rate that had been forecast by economists. Additionally, China's GDP expanded by 4.6% in the first nine months of the year, putting it on track for its full-year target of 4.5%-5%.

The strong quarter was fueled in part by a 5.5% bump in industrial production in September, up from 5.2% in the previous month, thanks in large part to strong export demand for electronics and AI-related equipment. China also reported its second-highest monthly trade surplus in September, and the full year is on pace to exceed 2025's record $1.19 trillion surplus. 

However, China's strong exports have continued to mask weaker aspects of the country's economy. In the first nine months of 2026, fixed-asset investments — such as buildings, equipment and infrastructure — fell by 7.2%, including a 20.6% dip in property investments, and a 4.2% decline in infrastructure investments. Local governments also pulled in 28.6% less funding from leasing land to developers, leaving them with significantly less money to build and maintain roads, bridges and rail lines. 

That downturn can be traced back to a debt-fueled property boom through the 2000s and 2010s, followed by Beijing’s 2020 crackdown on excessive borrowing by developers. Those restrictions left many builders struggling to repay debts and finish homes they had already sold. Then as the housing market weakened, developers pulled back on construction and land purchases, squeezing revenues for local governments.