China's Q3 GDP Grows 4.5%, Beating Forecasts as AI Demand Lifts Exports

China's economy expanded faster than forecast in the third quarter, with gross domestic product rising 4.5% compared with the same period a year earlier, according to data reported by The Guardian. The stronger-than-expected reading was driven by an AI boom that boosted exports, with industrial output buoyed by demand for electronics.

The 4.5% year-on-year growth rate outpaced expectations, underscoring the role that overseas demand for technology products has played in supporting Chinese economic activity. Electronics demand was identified as a key factor lifting industrial production during the quarter, as the global build-out of artificial intelligence infrastructure and related hardware continued to feed through to Chinese manufacturers.

The figures point to a Chinese economy whose momentum is increasingly tied to export-oriented technology supply chains. Growth of 4.5% represents a solid pace for the world's second-largest economy, and the composition of that growth — led by electronics-linked industrial output rather than domestic consumption — is likely to shape how investors assess the durability of the expansion.

For markets, the data suggests that demand tied to AI and electronics remains a meaningful support for Chinese industrial activity, even as broader questions about the economy persist. Investors tracking Chinese equities and global technology supply chains will be watching whether export strength in these categories can be sustained in coming quarters, and whether it continues to offset softer areas of the economy. The beat against forecasts may also influence expectations around policy settings, given the growth figure came in ahead of what analysts had anticipated.