China's economic growth slows as trade tensions with US flare up

China's economic growth has decelerated to 4.8% in Q3 due to ongoing issues in its property sector and heightened trade tensions with the U.S. This slowdown is significant as it marks the weakest growth pace in a year, despite previous government interventions and a fragile trade truce with the U.S. that had temporarily boosted exports. The recent implementation of controls on rare earths exports by China has caused friction, prompting a swift tariff threat response from the U.S. The upcoming discussions among China's top leaders will be crucial in shaping the economic strategies for the next five years, particularly as domestic spending remains sluggish and the property market continues to contract.

Key Market Implications:
- **Uncertainty in Global Supply Chains:** The controls on rare earths could disrupt global electronics production, impacting technology sector stocks worldwide.
- **Potential U.S. Tariffs Impact:** New U.S. tariffs could further strain relations, impacting multinational corporations with significant exposure to China.
- **Real Estate Concerns:** Persistent struggles in China's property market may affect global real estate and construction-related businesses.
- **Technology and Services Growth:** Despite overall slowdown, sectors such as technology and business services in China continue to grow, possibly offering safe havens for investment.