China's Economy Leans Ever More on Foreign Demand
Capital Economics' Nguyen Hoang Nam says China's third-quarter growth rebound was driven by exports while domestic demand keeps weakening.
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what happened
Nguyen Hoang Nam, China economist at Capital Economics, says in a note that the Chinese economy is relying more on foreign demand while domestic demand continues to struggle. Market Talk reported his comments.
According to him, faster growth in the third quarter masks a further weakening of domestic demand. A detailed breakdown shows that the entire rebound last quarter came from exports, and even the boost from AI-related activity increasingly depends on overseas orders.
He expects rising exports to support the economy in the near term, but says this reliance leaves it exposed to rising trade barriers or a reversal in the global AI boom.
why it matters
For markets, the strength of China's economy depends heavily on external trade. More trade barriers or weaker global demand for AI-related goods could weigh on the yuan, Chinese equities and commodities tied to Chinese demand.
market impact
Yuan and China stocks: export dependence raises risk if trade barriers rise or AI demand slows
tags
instruments
sources
- China Becoming More Reliant on Foreign Demand — Market Talk, 21 October 2026 at 07:33 UTC
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