China: Economic growth drops to 6.5% – the lowest level since 2009

China's growth has fallen to its lowest level since early 2009. In the context of the trade dispute with the United States, gross domestic product increased by only 6.5% between July and September compared with at the same time of the previous year. This was announced Friday by the Bureau of Statistics in Beijing.

The decline was slightly stronger than expected, analysts expected an increase of 6.6%. Chinese stock exchanges reacted with a discount early in the session, but then recovered.

However, since the beginning of the year, China's economy has grown by 6.7 percent overall, the statistics office 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.

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 the trade dispute to have a much greater impact in the coming months, as most of the US special rights on imports from China are in effect last month.

The United States and China have been covering for months with import duties. Real relaxation in the conflict is not yet in sight.

The difference between US exports to China and US imports from China has increased significantly over the past two decades. US President Donald Trump finds it unfair and has promised his constituents to change that (read more here). Trump calls for greater market openness, the end of government subsidies and an effective fight against technology theft. The conflict weighs on the financial markets because they fear a trade war.

Discussions between Washington and Beijing are currently pending. However, Trump and Chinese head of state Xi Jinping will meet at the top of the major economies (G20) on November 30 and December 1 in Buenos Aires, Argentina.