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Beijing posts economic data amid trade war with US



A tourist guide holds an umbrella with a panda pattern in front of the Tiananmen Gate in Beijing, China.

Guang Niu | false images

China published second-quarter figures on Monday that show that its economy slowed to 6.2%, the weakest rate in at least 27 years, as the country's trade war with the United States took its toll.

From April to June, China's economy grew by 6.2% over the previous year, the country's statistics office said on Monday. That was in line with the analysts consulted by Reuters.

The growth of the second quarter was the slowest pace in the country since the first quarter of 1992, according to the first quarterly data recorded, according to Reuters.

China's economy expanded 6.4% year-on-year in the first quarter of 2019.

In the first half of the year, China's GDP grew 6.3% year-on-year.

China's statistics office said the economy faces a complex situation with an increase in external uncertainties, Reuters reported.

The second largest economy in the world faces new downward pressures and will try to ensure stable economic growth, the statistics office added.

China's trade dispute that lasted months with the United States is affecting its economy.

Friday's data showed that China's exports in June contracted from a year ago due to higher US tariffs. Imports into China also fell drastically due to the slowdown in domestic demand.

There is fear of a global economic slowdown if the trade war between the United States and China persists.

China's weak economic growth in the second quarter "could cause oscillations in the rest of Asia if the slowdown raises concerns of trade tensions," said Vishnu Varathan, head of economics and strategy for Asia and Oceania at Mizuho Bank.

With the slowdown in China's exports, "what is more worrisome is an even greater slowdown in China's imports points to the risks of the supply chain effects that affect the rest of Asia, so China is still a important market, "Varathan said in a note on Monday.

– Reuters contributed to this report.


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