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In the context of the US trade war, China's growth dropped unexpectedly. The second largest economy is growing more slowly than it has been since the beginning of 2009 after the onset of the global financial crisis. As the statistics office announced Friday in Beijing, the Chinese economy grew only 6.5% in the third quarter compared with the same period last year. The decline surprised. Experts expected 6.6% growth.
Since the beginning of the year, however, the Chinese economy has grown by 6.7 percent overall, the statistics bureau said. "At the same time, we must also note that the external challenges have increased considerably," said spokesman Mao Shengyong. In the first quarter, 6.8% had been achieved, the second and then 6.7%. However, until now, growth remains above the government's conservative target of about 6.5% for the entire year.
High exports before US special rights
Foreign trade proved to be quite robust in the third quarter, in part because exporters wanted to anticipate special duties imposed by the United States. Experts therefore expect that the trade war will have a much greater impact in the coming months, with most US special duties on imports from China being force than last month.
In order to keep the level of growth relatively stable, the government has already relaxed monetary and fiscal policy, said Max Zenglein of the China Institute Merics in Berlin. "The Chinese government fears a major economic slowdown." It is trying to give a new impetus to growth through infrastructure projects, for example.
However, new threats threatened: efforts to tackle the risks of the financial system could be blocked. China is "facing a combination of external and internal risk factors resulting from the trade war and excessive debt," Zenglein said. Beijing is obliged to act. "This clearly shows that the resilience of the Chinese economy is down."
Confidence in the country is down
The fight against debt and financial risks increases the credit costs of companies. In addition, the confidence of market players is declining, said Liu Yuanchun, economics professor at Beijing People's University. "The economy is affected by a slowing trend of investment and consumption." The trade war will also have a more direct impact in the fourth quarter.
US President Donald Trump had imposed special duties on imports from China worth 250 billion US dollars (217.30 billion euros), about half of Chinese exports to the United States. United States. Trump threatens to continue to increase by raising rates. Trump calls for greater market openness, the end of government subsidies and an effective fight against technology theft.
In retaliation, China has imposed $ 110 billion special duties on imports from the United States. Much more is not possible because the United States exported to China last year for only about 130 billion dollars.
Talks between the two sides are on the ice. However, Trump and Chinese party leader Xi Jinping will meet at the top of the major economies (G-20) on November 30 and December 1 in Buenos Aires, Argentina.
(APA / dpa)
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