With US tariffs and high public debt looming, China’s economy slows down

In the second quarter, the economy grew by 6.7 per cent compared to a year ago, a slight drop from 6.8 per cent in the first quarter., Chinese exports grew in June, as did the trade surplus with the United States, creating fears that the tariff dispute might escalate.


Beijing (AsiaNews/Agencies) – China’s economic growth slowed as expected in the second quarter because of the looming trade war with the United States and the government’s efforts to cut public debt by limiting loans.

The economy grew 6.7 per cent in the second quarter from a year earlier, cooling slightly from 6.8 per cent in the first quarter, the National Bureau of Statistics said on Monday.

The world’s second-largest economy has already felt the effects of a multi-year crackdown on riskier lending that has driven up corporate borrowing costs, prompting the central bank to pump out more cash by cutting reserve requirements for lenders.

On the other hand, China’s exports grew, as did the trade surplus with the United States, creating fears that the tariff dispute might escalate.

For years, the United States has been calling for a more balanced trade relationship with China. More recently, it has imposed a 25 per cent tariff on a number of Chinese import products.

US President Donald Trump has also threatened to impose an additional 10 per cent on US$ 200 billion worth of Chinese goods.