China's economy experienced a modest rebound in the third quarter, growing by 4.5% as artificial intelligence (AI) exports propelled its growth. This comes despite domestic weaknesses, such as property investment's decline of over 20% year-on-year. Oxford Economics' Sheana Yue highlights that manufacturing and high-tech exports have buoyed the economy, but trade tensions and geopolitical issues continue to cast a shadow over consumer spending.

While China's trade surplus is set to surpass last year's record of $1.2tn, property developers face the ongoing challenges of a property slump and excessive borrowing. Beijing’s recent measures, including lower interest rates and property buyer subsidies, aim to support the economy, but face backlash from Western manufacturers struggling to compete with cheap Chinese goods.

The tech industry stands as a key driver, with global demand for AI components easing pressure on Beijing. However, concerns persist over the billions invested in AI infrastructure and the ability of companies to translate these investments into significant profits. As China’s growth accelerates, the world watches to see how these factors will shape its future.