China’s ability to go toe to toe with the United States in the ongoing trade dispute was cast into doubt by economic data released this week showing an economy that had slowed down by far more than expected. Fixed income investment, which includes spending on machinery and infrastructure, rose 5.5 percent compared with a year ago, down from 6.0 percent in the prior month. Economists had expected 6.0 percent. It was the lowest level of fixed income investment growth since 1999, before China ascended to the World Trade Organization. Industrial production was up 6.0 percent, below the 6.3perrcent forecast. Unemployment rose to 5.1 percent last month, up from 4.8 percent in June. Retail sales annual gains were expected to rise from June’s 9.0 percent to 9.2 percent. Instead, sales fell to 8.8 percent.
Clearly China has FAR more to lose in this trade dispute than America does. Maybe Trump’s tariffs strategy IS working after all.. For more, click on the text above.