The Trade War Is Not the Only Drag on China’s Slowing Economy

The Trade War Is Not the Only Drag on China’s Slowing Economy
A man walks past China’s central bank, or the People’s Bank of China, in Beijing, March 10, 2019 (AP photo by Andy Wong).

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China.

Economic data published Monday revealed China’s economy is growing at its slowest pace since at least 1992, when modern record-keeping for quarterly growth began. Official figures from China’s National Bureau of Statistics showed the economy grew 6.2 percent between April and June, compared with a year earlier. Though it still looks like a brisk pace, it represents a slowdown for China, where the previous quarter’s growth rate was 6.4 percent.

A slump in trade was a main reason for the decline. Exports fell 1.3 percent as U.S. tariffs on $200 billion worth of Chinese goods rose from 10 percent to 25 percent in May. While the trade war has limited American purchases from China, economic weakness in Europe and many Asian countries is also weighing on demand for Chinese goods overseas.

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