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Beijing (AP) – In the context of the trade war with the United States China Growth has declined 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 Friday in Pekin The Chinese economy grew only 6.5% in the third quarter compared to the same period last year. The decline surprised. Experts expected 6.6% growth.
However, since the beginning of the year, China 's economy has grown by 6.7%, said the statistics bureau. "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 fairly robust in the third quarter, partly because exporters were supportive of special rights USA wanted to precede. 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 serious economic slowdown." It is trying to give a new impetus to growth, for example through infrastructure projects.
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 related to 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."
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 slower trend in investment and consumption." The trade war will also have a more direct impact in the fourth quarter.
The American president Donald Trump had imposed special duties of $ 250 billion on imports from China, about half of Chinese exports to the 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 (G20) in Buenos Aires, Argentina on November 30 and December 1.
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