China's GDP growth slowed to 6.5% in the third quarter of 2018; its weakest pace since the financial crisis

The rate is falling, respectively 6.8% and 6.7% in the first and second quarters, but in line with the growth target of about 6.5% for the year set by Chinese economic decision makers. (Reuters)

The Chinese economy has experienced the slowest growth in the third quarter in nine years, thanks to a campaign to fight the increase in debt and trade friction with the United States. The world's second-largest economy posted 6.5% annual growth from July to September, according to official GDP figures released Friday by China's National Bureau of Statistics.

The rate went from 6.8% to 6.7%. percent in the first and second quarters, respectively, but in line with the growth target of about 6.5% for the year set by Chinese economic decision makers. "In the face of an extremely complex environment abroad and the daunting task of reform and development in the country," China's economic growth has remained broadly stable, said NBS spokesman Mao Shengyong. .

Trade with the United States is a difficult time for the Chinese economy. which has been affected by the government's efforts to cope with a mountain of debt, with credit crunch and falling investment in infrastructure. Data showed Friday that capital investment rose 5.4% in January from September to September, compared to record lows in the previous year, as Beijing dominated spending on bridges, roadways and roads. iron and highways. Analysts believe that the slowdown in growth could put an end to Beijing's fiscal prudence.

The Chinese cabinet has already announced its intention to strengthen its support and accelerate the approval of infrastructure projects in the coming months, although experts do not expect the measures come into force before next year.

The sluggishness of exports has reinforced the need for Beijing to rely on its legion of consumers to develop its economy. Retail sales, a window to Beijing's goal of encouraging consumers to stimulate the economy, grew 9.2 percent year-over-year, up from 9.0 percent in August and ahead of estimates. .

Relations between the world's two largest economies have deteriorated Suddenly this year, US President Donald Trump has turned to higher tariffs to impose concessions in trade negotiations with Beijing. Washington has touched about half of Chinese imports, while Beijing has concentrated on most US imports. Exports still account for a large part of the Chinese economy, and Washington's tariffs on cars, machinery, electronics, appliances, and others have prompted many companies to shift production and delay investment in China. China.

Up to now, exports to the United States have resisted. but economists expect trade frictions to weigh on growth in the coming months and next year. The conflict has more directly affected confidence in China. The Shanghai stock market fell about a quarter this year, while the yuan lost about 9% against the dollar. "If the market gets a bit panicked … investments are closely linked and trade is closely linked, which can be a vicious circle," said Lian Weicheng, an economist at the International Monetary Fund. Economic surveys already show that many US and European companies have put an end to their investment projects in China, with commercial tensions clouding the outlook for the future.