In China, the impact of the trade conflict with the USA are clearly noticeable. The growth of the second-largest economy is the lowest since the beginning of 2009, after the outbreak of the global financial crisis, not more.
Views of the Skyline of Shanghai
As the statistics office in Beijing announced, to put China’s economy in the third quarter by 6.5 percent compared to the same period last year. Analysts ‘ expectations were missed. They had expected 6.6 per cent, after a Plus of 6.7 percent in the second quarter and 6.8 in first. The Chinese exchanges have responded with reductions in early trading.
Overall, the gross domestic product growth of China since the beginning of the year to 6.7 percent, reported the statistics office. Thus, the growth is still above the prudent requirement, the government of around 6.5 percent for the year as a whole. Industrial production fell in September, with 5.8 per cent but also lower than experts expected. Investments in the first nine months of the year, as well as retail sales in September rose more than expected.
As the robust external trade was in the third quarter continued to be, among other things because export wanted your come to the special duties of the United States before. Experts therefore expect that the trade war will affect in the next few months, which is significantly stronger, since the majority of the U.S. special duties on imports from China only since last month. The “external challenges” and the pressure on the Chinese Economy have increased, said a government spokesman.
Further dangers threaten
“The Trend of slowing growth is increasing, to support, despite the promise of government investment growth,” said Kota Hirayama of financial service providers SMBC Nikko Securities. Because the Chinese government fear a strong economic downturn, they’ve already the monetary and fiscal policy loosened in order to keep the level of Growth is relatively stable, said Max Zenglein from the China Institute Merics. So you try to give the growth such as through infrastructure projects new impulses. Thus, a new danger threatened, however: The efforts to tackle risks in the financial system, could be Stalled.
Through trade, war and the escalating debt, China is faced “with a combination of external and internal risk factors,” said Zenglein. The fight against debt and financial risks have increased the cost of credit for businesses. Also, the Confidence of market participants, declining, Liu Yuanchun, Economics Professor at the Beijing people’s University reported. “The economy is affected by a slower Trend in investments and in consumption.” In addition, the trade war will have an impact in the fourth quarter, direct.
No relaxation in the Trade dispute in sight
The USA and China put up tariffs since months of each other with the Import. US President, Donald Trump has proven imports from China worth US $ 250 billion special duties – about half of Chinese exports to the United States. He also threatens with an increase in the customs duties. Trump calls Beijing a greater opening of the market, an end to state subsidies and effective action against technology theft.
In retaliation, China has imposed special duties on imports from the United States to the value of 110 billion dollars. Much more can’t because the US has exported in the past year, only about 130 billion U.S. dollars to China.
A real relaxation in the conflict is not yet in sight. The talks between the two sides are on hold. But. Trump and China’s state and party chief Xi Jinping at the summit of leading economic Nations (G20) on 30 November and 1. December meeting in Buenos Aires, Argentina.
se/ww/fw (rtr, dpa, ap)