HONG KONG - China announced Monday that its economy expanded 4.5 percent in the July-September quarter compared with a year earlier, powered by solid exports. The result edges the country nearer its official yearly target even as trading partners work to narrow deficits with Beijing.

The outcome topped forecasts and improved on the 4.3 percent yearly gain posted in the April-June period, which marked the weakest pace in more than three years.

Leaders in Beijing set a full-year goal of 4.5 to 5 percent growth, below the 5 percent recorded last year. The International Monetary Fund recently lowered its 2026 projection for China to 4.5 percent, the bottom of that range.

Domestic demand stayed soft while trade performed well, noted Dave Chia of Moody's Analytics. Exports should remain firm, yet global trade barriers pose ongoing risks.

The main official growth number is turning into a weaker gauge of overall economic health, observed Max Zenglein of The Conference Board. It hides widening gaps across sectors, regions and households, he added, and Beijing must navigate tough choices where fixing internal imbalances may prove harder than handling outside pressures.

Years of property-sector weakness have curbed household wealth and lifted savings rates, weighing on local consumption.

At a press briefing Monday, National Bureau of Statistics deputy chief Mao Shengyong warned of hurdles ahead. The global setting remains intricate and unsteady, he said, domestic demand shortfalls stay notable, and the base for steady economic improvement still requires strengthening.

With exports among the few positive signals, China appears set to exceed last year's record 1.2 trillion dollar global trade surplus. Shipments jumped 36 percent last month, and the surplus already reached 938 billion dollars from January through September.

High U.S. tariffs have curbed some bilateral flows, prompting China to redirect sales toward Southeast Asia, Latin America and Europe. High-tech items such as semiconductors plus autos, including hybrids and electric vehicles, lead the export gains this year.

Seeking greater self-reliance to counter Western controls and trade risks, China has expanded manufacturing capacity in areas like solar panels and EVs, often with state support. Output rose quickly while local consumption lagged, so many goods now reach overseas buyers at competitive prices.

An export-led model centered on technology has delivered limited job growth and broad income gains, while artificial-intelligence shifts threaten further labor displacement, said Ecaterina Bigos of BNP Paribas Asset Management.

Many trading partners worry that cheaper Chinese manufactured goods threaten their own industries and economies.

It is unworkable for the world's second-largest economy to depend on foreign demand to sustain its expansion, stated Eswar Prasad of Cornell University. Through repeated large surpluses, China has become a drag on global growth rather than a driver, he added.

The European Union, facing a daily trade deficit with China exceeding 1.1 billion dollars, seeks faster balance. Exports from China to the bloc rose 16 percent in the first nine months. EU members eye tighter limits after agreeing this month to cut Chinese hybrid-vehicle inflows by roughly half over several years.

China can negotiate disputes and values continued market access, said Gary Ng of Natixis. A hybrid-car accord with the EU could let Beijing sell more China-made goods over time without broad tariff increases.

Even after such deals, trade gaps will resist quick fixes, cautioned Lynn Song of ING.

Some policymakers argue an undervalued yuan versus the dollar and euro has widened China's surplus, though the central bank rejects the claim.

Continued pushback, rising protectionism and pressure to shield industries and jobs, especially in high-value fields, are likely ahead, Bigos noted.

Beijing maintains it does not aim for a large surplus. Central bank governor Pan Gongsheng said Friday that deficit and surplus nations should cooperate, and that China remains committed to boosting domestic demand.