China experiences economic slowdown amid trade challenges

China’s economy has experienced a slowdown due to trade tensions caused by US President Donald Trump’s tariffs and a lingering crisis in the property market, which have impacted its growth. According to official statistics, the world’s second largest economy expanded by 5.2% in the three months up to the end of June compared to the same period last year. This represents a decrease from the 5.4% growth seen in the previous quarter. Nonetheless, China has avoided a sharp decline so far, partly owing to measures taken by Beijing to bolster the economy and a fragile tariffs truce with Washington. The National Bureau of Statistics of China stated that despite challenges, the economy demonstrated resilience and steady improvement. The expansion in manufacturing, driven by increased demand for 3D printing devices, electric vehicles, and industrial robots, contributed to the economic growth. The services sector in the country also experienced gains. However, retail sales growth waned from 6.4% in May to 4.8% in June compared to the previous year. Additionally, official data on Tuesday revealed a decline in China’s new home prices in June, with the industry continuing to struggle despite various support measures. Some economists predict that China may not meet its “around 5%” annual growth target this year. According to Dan Wang, director for China at consultancy Eurasia Group, the question is the extent of the decline, and he anticipates China will maintain a minimum politically acceptable level of 4%. The trade conflict between China and the US led to the imposition of heavy tariffs, with both sides introducing duties on certain goods. These tariffs were temporarily halted following negotiations in Geneva and London, with a deadline of August 12th to reach a long-term trade agreement. The US has also imposed high levies on countries with close economic ties to China.

Source: https://www.bbc.com/news/articles/c20r461g61xo