China's Economy Grows 4.5%, Beating Forecasts on AI Export Boom

China's economy expanded faster than forecast, growing 4.5% as an AI-driven boom boosted exports, according to figures published today. The reading signals unexpected resilience in the world's second-largest economy and points to firmer momentum than economists had anticipated heading into the period.

The faster-than-expected growth matters for investors because China is a major engine of global demand, and stronger activity there supports risk sentiment across equity and commodity markets. The AI boom's contribution to exports underscores how technology supply chains are becoming an increasingly important driver of Chinese trade, offering a counterweight to softer domestic conditions. For global portfolios, the data reduces the risk of a sharper slowdown scenario that had weighed on cyclical assets and industrial commodities.

Attention now turns to whether the pace can be sustained. Investors will watch upcoming trade and export figures for confirmation that AI-related demand remains intact, alongside any policy signals from Beijing on supporting domestic activity. Details on the composition of growth — particularly the balance between external demand and domestic consumption — will be key to judging whether the 4.5% expansion reflects durable strength or a narrower, export-led lift.