Chinese Economy Shows Worst Performance in 27 Years
The Chinese economy has shown the lowest growth rate in the second quarter of 2019, according to a report published by the country’s National Bureau of Statistics (NBS) Monday, July 15.
In Q1 2019 the economy grew 6.4%, and in Q2 2019 only by 6.2%, which is the worst performance since the NBS started calculating Chinese economic data in 1992. In the same period in 2018, the GDP grew 6.7%.
The experts agree that the U.S. sanctions imposed on Chinese goods are the main reason behind the decline. The effect of Donald Trump’s trade war is more pronounced than Chinese government's efforts to restore the economy.
As per Nomura experts cited by The South China Morning Post, for China "the worst is yet to come." The analysts predict that the decline in exports will cut another 0.4 percentage points off China's GDP growth.
The trade war started shortly after Trump took the office. In 2017, the U.S. launched an investigation into Chinese trade policies. Later in 2018 the U.S. government imposed $250 billion tariffs on Chinese products. Beijing imposed $110 billion tariffs on U.S. products including chemicals, coal and medical equipment.
On May 16, the U.S. administration added Huawei to a list of companies that are banned from supplying telecommunication gear to U.S. companies and vice versa.