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China’s economy is picking up speed, helped by the AI boom.

China’s economic growth rose to 4.5% in the three months to September, following a three-year low in the previous quarter.

Much of the recovery has come from exports with global demand for computer chips and other parts used in AI data centres increasing.

Sales of high-tech goods grew by 14.3%, while output of batteries and industrial robots each rose by more than 29%.

In China, however, businesses face weak consumer spending. Slow wage growth and high youth unemployment have reduced household spending power. Trade uncertainty has made consumers more nervous.

In September, the government introduced measures to help, including lower interest rates for some businesses and subsidies for people buying property.

China relies heavily on exports, and the US and European Union have reacted badly because their manufacturers struggle to compete with cheap Chinese goods.

There are also doubts over whether companies spending billions on AI will earn the large profits promised.