The 6.5% quarterly growth is the lowest since the first quarter of 2009 and is mixed news for Chinese leaders as they brace for a prolonged trade conflict with Washington.
The slowdown in economic growth and the stock market decline has forced the Chinese government to issue a statement in an attempt to provide investors with greater confidence and paint a brighter outlook for the economy over the final three months of the year.
He told CNBC: "China can not be growing at 6.6-6.7 percent every quarter because of the fact that they're starting to de-leverage and also for the fact that you've got a trade dispute going on with the Americans".
China's economy grew 1.6 per cent on a quarter-by-quarter basis, according to the National Bureau of Statistics.
US President Donald Trump imposed additional tariffs on $ 250 billion worth of Chinese exports to force Beijing to cut about $ 375 billion bilateral trade deficit.
The result was also a drop from the 6.7% rate in the prior quarter, but remains in line with the government's full-year target of about 6.5%.
In a warning this week, Chinese Premier Li Keqiang said the Asian economic powerhouse faces increasing downward pressure and pledged the government will take targeted measures to prevent large fluctuations in growth.
While a years-long de-risking campaign has driven up borrowing costs and weighed on activity, authorities are now trying to mitigate the broader economic impact of higher U.S. trade tariffs.
The top price performer in September was Xian, the capital of China's northwestern Shaanxi province, whose prices rose a blistering 6.2 per cent from the previous month, NBS data showed.
Under efforts to stem the hemorrhage, the PBoC on Friday said it was studying measures to ease companies' financing difficulties and would also use monetary policy tools to support banks' credit expansion. While Trump's tariffs on Chinese imports may explain some of the current slowdown, they only went into effect, in force, on September 24.
Earlier this month, China's central bank made a decision to cut the amount of cash that large banks must hold as reserves, to prompt financial institutions to lend more money to companies and other entities to bolster consumption and domestic investment.
"China-US trade frictions have affected the market, but frankly speaking, the psychological impact is greater than the actual impact and China and the US are now in contact", said Liu He, China's top economic policy maker in a Friday interview with official news agency Xinhua meant to reassure markets.
"Momentum for the economy to maintain steady growth has increased", People's Bank of China governor Yi Gang was quoted as saying. Nomura estimates the ratio of outstanding pledged shares in the mainland Chinese A-share market is about 8.9 percent in the third quarter, down from a peak of 10.4 percent in the first quarter of 2016.
Washington has hit roughly half of Chinese imports while Beijing has taken aim at most United States imports.
While September retail sales, a key indicator of domestic demand, saw a slight improvement from August, output at China's factories and workshops slowed, according to the NBS.