Trade War

China’s economy growth cools further amid US tariff war

The tariff war showed another sign of impacting the Chinese economy. China’s economic growth sank to its lowest level in at least 26 years in the past quarter, adding to pressure on Chinese leaders. The world’s second-largest economy grew 6.2 percent over a year ago. That’s down from 6.4 percent in the prior quarter, according to government data. President Trump Opens a New Window. hiked tariffs on Chinese imports to pressure Beijing over its technology development tactics and he tweeted about the results. Now, economists say the slowdown might extend into next year. Trump and Chinese President Xi Jinping agreed last month to resume negotiations. The two sides still face the same number of disputes that caused talks to break down in May. Weaker Chinese activity has global repercussions. China is the biggest export customer for its Asian neighbors and a major market for global suppliers of food, mobile phones, industrial technology and consumer goods. The International Monetary Fund and private sector economists have cut this year’s Chinese growth forecast to as low as 6.2 percent, a further marked decline after last year’s three-decade low of 6.6 percent.

Bottom line..  Trump’s tariff’s ARE working “big time!”  And, given China’s poor economic situation, NOW is the time to keep that pressure on so we get that better “deal” which hopefully will include addressing American intellectual property rights, etc

China’s Economy Weakens as Trade Fight Heats Up, Emboldening Xi’s Critics

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.