Chinese growth slows in the third quarter to its lowest level in nine years

China's economic growth slowed in the third quarter, reaching its lowest level in nine years, due to the intensification of the trade war with the United States and stagnant investment, which could push Beijing to strengthen its support for economic activity.
The National Bureau of Statistics (NBS) announced Friday that the world's second largest GDP grew by 6.5% between July and September, reversing the current gloom.
This figure is similar to the average forecast of 12 analysts interviewed by the Agence France-Presse, indicating a marked slowdown in growth after having resisted the first two quarters (6.8%) and the second (6.7%). although they remain within the government's target range of "about 6%". 5% "for the whole year.
The weakest quarterly growth of the Asian giant since the first quarter of 2009, when the financial crisis swept the global markets.
National Bureau of Statistics spokesman Mao Xingyong acknowledged that the country "is facing a very complex environment abroad and radical reform efforts".
Chinese economic activity is suffering from the consequences of escalating trade disputes between Beijing and Washington: the US administration has imposed tight tariffs on Chinese goods worth 250 billion dollars per year since July, including cars, machinery and power tools, while exports remain an important driver. From the economy of this country.
This trade war makes it more difficult for China to end the consequences of the communist regime's efforts to reduce its debt.
In an effort to contain growing debt, the government has tightened lending terms, cracked down on uncontrolled "miracle funds", and lobbied local councils to limit their public spending and investments. loans.
These efforts are directly affected by major infrastructure projects and the real estate sector, the two main pillars of Chinese GDP, and corporate financing is also underway.
In a slowdown indicator, capital investment, which is the index of infrastructure spending, is still in place.
Although these investments recorded a slight and unexpected increase of 5.4% during the first three quarters of the year, after 5.3% during the same period last year, they remain close to the lowest. level never recorded.
"We can doubt that this recovery is sufficient to prevent the economy from slowing further in the coming quarters," warned Julian Evans Pritchard of the Capital Economics office.
The National Bureau of Statistics also released other figures also indicating that there was no decisive progress. Industrial production also slowed in September, registering a growth rate of only 5.8% compared to the same month last year, a slower pace than the experts surveyed. Bloomberg agency (+ 6%).
"The trade war has not affected Chinese exports in the third quarter," said Betty Wang, an analyst at ANZ. "It has been supported by companies that have accelerated the delivery of goods before the entry into force of US tariffs, taking advantage of the depreciation of the yuan.But" the manufacturing sector has declined "and" this trend is expected to deteriorate fourth trimester".
The only positive indicator remains the retail sales figures, the consumption index, which reflects vitality with an unexpected jump of 9.9% in September compared to the same month last year, compared with a growth of 9% in August.

Trade disputes have resulted in investor confidence: the Shanghai Stock Exchange has lost about one third of its value since its peak in January, while the yuan has fallen by nearly 9% against the dollar.
Three top Chinese officials, including the governor of the central bank, sought to ensure Friday that recent setbacks in the financial markets were "abnormal".
But many analysts believe that economic recovery requires more than just words.
"We must expect an escalation of Sino-US tension in 2019, which will likely be tempered by corrections of the yuan and more vital monetary and fiscal policies" to boost economic activity, said the official. economist JP Hubein, JP Cheepin.
This year, the central bank has reduced the proportion of reserve requirements imposed on banks to allow more loans.
"If the market is a bit panicky, it could have a negative impact on investment, and then on trade," IMF economist Lian Weicheng said Thursday at a conference. in Beijing. "It's a vicious circle."
"There are still many unknown factors related to the tensions between China and the United States, and the economy should therefore remain under pressure," said Mao Xingyeong, spokesman for the National Bureau of Statistics.