Core Viewpoint - The article highlights a "strong production, weak demand" dichotomy in China's economy for Q3 2025, indicating a need for structural policy adjustments to address internal and external demand pressures [1]. Economic Growth Analysis - In the first three quarters, China's economic growth exceeded the annual target, with Q3 GDP growing by 4.8% year-on-year, a decline of 0.4 percentage points from Q2 [1]. - Monthly data shows that September's economy exhibited strong production but weak demand, influenced by policy transitions and holiday timing [1]. Production Insights - Structural improvements in the production sector were noted, with resilient exports and the Mid-Autumn Festival holiday contributing positively [1]. - The "anti-involution" policy's earlier disruptions to production have subsided, leading to a shift from scale expansion to quality enhancement in industrial output [1]. Demand Challenges - Consumer growth appears sluggish, with holiday timing causing a delay in consumption, and the effectiveness of trade-in policies diminishing [1]. - Factors such as property income affecting income growth and consumer confidence are significant challenges for demand [1]. Investment Trends - Investment continues to face pressure, although new infrastructure initiatives are showing marginal signs of improvement [1]. Policy Recommendations - The report suggests that to tackle the challenges of rising economic baselines and increasing external pressures, structural tools for counter-cyclical adjustments should be employed, such as expanding equipment renewal subsidies, issuing consumption vouchers, and optimizing export tax rebates [1].

Core Insights - The article highlights a "strong production, weak demand" pattern in China's economy for Q3 2025, necessitating structural policy adjustments to address internal and external demand pressures [1] Economic Performance - China's GDP growth in Q3 2025 was 4.8% year-on-year, a decline of 0.4 percentage points from Q2 [1] - Monthly data indicates a shift in economic dynamics due to policy transitions and holiday timing, with September showing strong production but weak demand [1] Production Sector - Structural improvements in the production sector were noted, with resilient exports and the timing of the Mid-Autumn Festival contributing positively [1] - The "anti-involution" policies have lessened their disruptive effects on production, leading to a focus on quality enhancement rather than mere scale expansion [1] Demand Sector - Consumer growth appears sluggish, with holiday timing causing a delay in consumption [1] - The effectiveness of trade-in policies has diminished, and property income has negatively impacted income growth and consumer confidence [1] Investment Trends - Investment continues to face challenges, although new infrastructure initiatives are showing marginal signs of improvement [1] Policy Recommendations - The report suggests employing structural tools for counter-cyclical adjustments, such as expanding equipment renewal subsidies, issuing consumption vouchers, and optimizing export tax rebates to mitigate current economic downturn pressures [1]