China’s economy contracts as tariff stand-off bites
15 Jul 2019 - by
Emerging markets are bracing themselves for a knock-on effect after latest trade figures coming out of China reflect a major slow-down in the mineral resource consumer’s economy.
More to the point, China’s economic growth has slowed to its worst pace since global economies started measuring quarterly data in 1992.
For the second quarter (Q2), its GDP is down 0.2% from the 6.4% measured in Q1.
China’s net exports are also down to 20.7% in Q2.
In Q1 the figure was 22.8%.
The contraction is said to be directly related to the trade stand-off with the US which is now more than a year old after Donald Trump’s presidency proceeded with tariffs on Chinese goods.
And as policy-makers struggle to appease both Beijing and Washington, no word has been received about mooted talks between Trump and Chinese President Xi Jinping following recent commitments toward further talks made during the G20 summit in Japan.