China’s economic growth fell to its lowest level in almost\nthree decades as the world’s second largest economy feels the effects of the\nlong trade war with the United States.<\/p>\n\n\n\n
The country’s gross domestic product (GDP) rose 6.2 percent\nin the quarter that ended in June, the slowest quarter-on-quarter growth since\n1992 and down from 6.4 percent in the previous quarter, according to government\nfigures released Monday. The National Bureau of Statistics declared in a\nstatement that the country\u2019s economy will continue to face “downward\npressure” in the second half of this year. “The Chinese economy is\nstill in a complex and grave situation,” the Bureau said. “Global\ngrowth has slowed and external uncertainties are on the rise<\/p>\n\n\n\n
Beijing and Washington recently agreed on a temporary truce\nfrom the months-long trade war and plan to resume trade talks. White House\ntrade adviser Peter Navarro said in a television interview last Friday that US\nTrade Representative Robert Lighthizer would travel to Beijing with Treasury\nSecretary Stephen Mnuchin in the near future.<\/p>\n\n\n\n
However, analysts say there are still question marks on\nwhether the two sides could reach an agreement to cancel the tariffs that have\nbeen applied over the past 12 months. \u201cUncertainty caused by the US-China trade\nwar was an important factor and we think this will persist,\u201d, analysts\ndeclared. \u201cBusinesses remain skeptical that the two countries will reach a\nbroader trade agreement and recognize that trade tensions may escalate again,\u201d.<\/p>\n\n\n\n
These growth figures came after China recorded a drop in\nboth exports and imports in the first six months of this year, suggesting that\nthe trade war is affecting an economy already suffering from weak domestic\ndemand. China’s exports fell 1.3 percent year-on-year in the first half of the\nyear in dollar terms, while imports fell 7.3 percent. The country recorded a\nsharp drop in exports to the United States, which fell by 8.1% in the first six\nmonths of 2019. Imports from the United States fell by 30% year-on-year.<\/p>\n\n\n\n
It should also be noted here that China’s ongoing trade war\nwith the US and the economic slowdown have already hurt some of the world’s\nlargest companies.<\/p>\n\n\n\n
Apple’s sales (AAPL) in China fell. Revenue in the Greater\nChina region, which includes Hong Kong and Taiwan, fell 21.5 percent in the\nsecond quarter to $10.22 billion, with China accounting for about 18% of\nApple’s total revenue.<\/p>\n\n\n\n
Global automotive brands are also suffering as the world’s\nlargest auto market continues to slow this year, after its first contraction in\ndecades in 2018. Chinese consumers are less willing to make large purchases in\nan uncertain environment, while the government’s campaign against harmful\npollution levels also has an impact.<\/p>\n\n\n\n
However, the trade war will help others while hurting China’s\ngrowth. According to data from the Census Bureau, Americans are beginning to\nmake more purchases from suppliers in Vietnam, Taiwan, Bangladesh and South\nKorea in an effort to avoid US tariffs on consumer goods.<\/p>\n\n\n\n
Analysts believe that Beijing will soon unveil more stimulus\nmeasures in an attempt to stabilize growth, including increased spending on\ninfrastructure and the possibility of a rate cut by China’s central bank, the\nPeople’s Bank of China. The US Federal Reserve also suggested it could cut interest\nrates as well.<\/p>\n","protected":false},"excerpt":{"rendered":"
China’s economic growth fell to its lowest level in almost three decades as the world’s second largest economy feels the effects of the long trade war with the United States. The country’s gross domestic product […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[116,36,34,114,48,24,131,10,58,57,70,47,86,109,39,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1296"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1296"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1296\/revisions"}],"predecessor-version":[{"id":1298,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1296\/revisions\/1298"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1297"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}