China's Economy Is Growing. Just Not Where Everyone Expected. We often discuss China's economic problems as if the entire economy were moving in the same direction. Monday's GDP figures suggest a more complicated picture. China's economy grew 4.5% in the third quarter, exceeding expectations. Exports and industrial production supported growth, while domestic consumption and the property market remained weak. Economic growth can continue even when important parts of an economy are struggling. For investors, the composition of growth matters more than the headline figure. Companies exposed to competitive manufacturing and international demand may experience very different conditions from businesses dependent on domestic property investment. There are risks, particularly from trade restrictions and excessive dependence on exports. But the figures also demonstrate that economic adjustment does not necessarily mean economic stagnation. The investment opportunity lies in identifying which businesses can translate structural change into sustainable profits.