What's going on?

So much for China�s slump: fresh data out on Monday showed the country�s economy grew by 4.9% in the third quarter versus the same time last year. Namast�.

What does this mean?

China�s economy grew by 0.7% in the first three quarters of 2020 combined. That�s slightly below analysts� estimates, sure, but who�s judging: the Chinese economy has now regained all the ground it lost when the coronavirus lockdown brought the country to a standstill at the start of the year. Put a lot of that down to its flourishing industrial sector, which represents 40% of its economy and grew almost 7% compared to a year ago. And there lies China�s not-so-secret weapon: the country�s services sector � which includes restaurants, stores, and other businesses hit particularly hard by the pandemic � only represents 50% of its economy, compared to the US and eurozone�s 70-75%.

Why should I care?

For markets: Don�t shop me now.

Let�s not take anything away from China�s shoppers, mind you. Monday’s data showed they�ve been more than happy to splash their cash, with retail sales growing by 3.3% in September compared to the same time last year � its second gain this year. Online sales, it might not surprise you to hear, have continued to roar: Chinese shoppers now do almost a quarter of their spending online, up from about a fifth last year.

The bigger picture: Do as the Chinese do.

China�s is the only major economy expected to grow this year, which might partly be because it was one of the first to wrestle with the pandemic (tweet this). The good news is that its success gives analysts and investors a blueprint for economic growth going forward, as well as cause for celebration: the country�s steady growth means it�ll keep buying European and American products, even as coronavirus cases in those regions start to rise again.