By employing time-series and panel regression models, this study examines the influence of external demand on China’s economic growth and its transmission mechanisms. The findings indicate the following. First, the sharp decline in external demand after 2010 exerted a marked influence on China’s economic slowdown. Second, the effect of external demand on economic growth is more pronounced in the coastal“three provinces and one city”(Guangdong, Jiangsu, Zhejiang, and Shanghai), whereas growth in other provinces is primarily driven by spillover effects from these key regions. Third, external demand significantly affects both investment and consumption, indicating that the net exports metric alone cannot fully capture its overall impact. The study concludes that the government should mitigate the cyclicality of external demand and accelerate the establishment of a new development pattern.

external demand, economic growth, transmission channels