Relaxation in the trade conflict between the United States and China is not in sight. The Chinese economy suffers – Beijing is trying with stimulus measures to counter.
China’s economy grows slower
The trade war with the United States, the Chinese economy in the second quarter as slow to grow as it has been since 27 years. The gross domestic product (GDP) increased from April to June, as expected, by only 6.2 percent year-on-year period, as the statistics office announced on Monday in Beijing. In the first quarter of the year it had passed to 6.4 percent. Behind the conflict with the United States always leaves deeper traces: Since last year, the world’s largest economy is stalling powers to each other with higher and higher tariffs, what is the export champion China is particularly strong. U.S. President Donald Trump accuses the people’s Republic of dumping prices, technology theft and other unfair trade practices, which China denies.
Experts believe that the growth will diminish despite various stimulus packages of the government. “China could grow in the second half of the year, only 6.0, or 6.1 percent,” said Economist Never Whom by the Finance house Hwabao Trust. Thus, the rate of increase in the total year 2019 at the bottom of the government’s forecast of 6.0 to 6.5 percent would be.
Looked at the G20 summit in Japan: U.S. President Donald Trump and the government of China chief Xi Jinping
Shanghai stock exchange to submit easily
Who is that Beijing is likely to attack the economy under the poor – by, for example, banks need to place less money as collateral at the Central Bank, and more funds for lending to be free. As a result, the economy could stabilize from the middle of 2020, the expert said. The Communist leadership has already announced tax cuts in the amount of nearly two trillion Yuan (about 258 billion euros).
This seems to support the economy. Industrial production and retail sales rose in June, a surprisingly strong 6.3 and 9.8 percent, as the statistics office reported. Traders found it Like that. The Shanghai stock exchange gained 0.3 percent to 2942 points. The economic programs of the government in Beijing be deceiving, apparently, the first fruits, said Analyst Frances Cheung of the Westpac Bank. Economist, Aidan Yao of the management of the assets of the insurer Axa expects further measures to stimulate the economy, supported by a looser monetary policy by the Chinese Central Bank.