China's economy slows amid trade war, weak demand

AWANI

China's third-quarter growth slipped to 4.8%, the weakest in a year, as trade tensions with the U.S. and sluggish domestic demand deepened concerns over its structural economic health.

Transcript

00:00China's economic growth has slowed to its weakest pace in a year,

00:05with official data showing GDP expanding to 4.8% in the third quarter,

00:10down from 5.2% in the previous quarter.

00:13However, much of this growth remains heavily reliant on exports,

00:18renewing concerns over structural imbalances

00:20and long-term sustainability of China's recovery.

00:23China is still targeting a full-year growth of around 5%.

00:30Despite tensions with Washington,

00:32Beijing has managed to diversify its exports with shipments to the EU,

00:37Southeast Asia and Africa,

00:39rising even as sales to the US fell 27% last month.

00:43But a sluggish domestic market remains a major drag.

00:47Retail sales slowed to a 10-month low of 3% in September,

00:50down from 3.4% in August.

00:53Analysts say weak local demand is forcing manufacturers

00:56to compete more aggressively overseas,

00:59often cutting prices and accepting slimmer profits to hold market share.

01:03Meanwhile, calls for deeper structural reforms have grown louder.

01:07Economies are urging Beijing to boost household consumption

01:10and reduce reliance on external demand.

01:14These issues are expected to take centre stage

01:16at this week's key Communist Party meeting,

01:18where leaders will outline the next five-year development plan.

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