China's economy grows at slowest pace since financial crisis

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The announcement came after China posted its lowest GDP growth since 2009.

The rate is down from 6.8 percent and 6.7 percent in the first and second quarters, respectively, but in line with a growth target of roughly 6.5 percent for the year set by China's economic policymakers.

Some analysts have also warned that China may face "stagflation", where economic stagnation is coupled with higher inflation.

China's third quarter economic growth slowed to its weakest pace since the global financial crisis, and missed expectations, as a campaign to tackle debt risks and the trade war with the United States began to bite. But Chinese leaders see them as a path to prosperity and global influence.

Chinese President Xi Jinping's top economic advisor Liu He said in an interview Friday published by state news agency Xinhua that the stock market slump is due partly to the U.S-China trade tensions and other external factors.

Beijing and Washington have been also divided over Taiwan, North Korea and the South China Sea, home to some of the world's busiest shipping lanes, where China and several Southeast Asian nations have overlapping maritime claims.

Chinese Vice Premier Liu He said Friday that state-owned enterprises (SOEs) are in an interdependent relationship with private enterprises, where there is mutual support and cooperation.

So far this year, the Shanghai stock index is down 22.54 percent, while China's H-share index is down 12.9 percent.

It follows efforts by authorities to crack down on excessive leverage in the financial system.

China's top financial officials moved to shore up confidence in the country's tumbling stock market, marshaling a rare show of coordinated verbal intervention as the government tries to prevent a $3 trillion equity rout from infecting the world's second-largest economy. That refers to fears the price decline might trigger sales by lenders that accepted stock as collateral for loans, flooding the market and setting off a new collapse. And there was a surge of exports to the United States right before then, as shippers rushed to get goods to the United States before the tariffs hit. Chinese companies' overseas shipments rose an average of 11.7% from a year earlier, a slight improvement from an average of 11.5% monthly growth in the quarter before.

The GDP breakdown, typically released a day after the headline report, offers greater detail on progress in the Chinese economy's re-balancing from old smokestack industries to newer services and consumption.

The reading will likely put pressure on Beijing to provide fresh support as investors grow increasingly concerned about the economic outlook, while the yuan and stock markets wallow at four-year lows.

"The current pace of export expansion is unsustainable", says China economist Larry Hu at Macquarie Capital Ltd., a Sydney-based investment bank. "The possibility can not be ruled out that stagnation will occur in China, having a negative impact on global economic recovery".

And Liu Wu, an analyst at China Development Bank Securities said in a note to investors that "this kind of pep talk will have little short-term boost to the market".

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