China's GDP growth reached its lowest level in 27 years as trade war hits

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The country's gross domestic product grew by 6.2% for the quarter ended June, the slowest quarterly growth rate since 1992 and down from 6.4% in the previous quarter, according to figures released by the government Monday.

And the Chinese economy will continue to face "downward pressure" in the second half of this year, the country's National Bureau of Statistics said in a statement.

"The Chinese economy is still in a complex and serious situation," the office said. "Global growth has slowed and external uncertainties are on the rise."

While Beijing and Washington recently concluded a temporary truce in their long-running trade war of several months, analysts believe that there are still many questions about the possibility of reaching an agreement.
The global economy has just dodged another ball. But the US-China trade truce will not solve the problem.

"The uncertainty caused by the trade war between the United States and China was an important factor and we believe it will persist," said Tom Rafferty, senior economist at The Economist Intelligence Unit, China.

"Companies remain skeptical about the possibility for both countries to conclude a broader trade agreement and recognize that trade tensions could escalate further," he added.

Analysts expect Beijing to unveil more stimulus measures to revive the economy, including possible interest rate cuts by the country's central bank, the People's Bank from China. The US Federal Reserve also said it could lower interest rates.

"While the PBOC has already provided stimulus this year, markets are waiting … for additional measures, which will likely come if trade negotiations fail," m said Edward Moya, Senior Market Analyst at Oanda. "If the discussions are progressing regularly, we will probably see again the [bank] new stimulus measures after the long-awaited Fed rate cut at the end of the month. "

Nanlin Fang contributed to this report.

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