The economic growth of China ha slowed down to its lowest level in almost three decades as it experiences the effects of the trade war with the US.
China, the second largest economy in the world, posted an economic growth rate of 6% in the quarter ended September, down from 6.2% in the previous quarter. This is the weakest quarterly growth rate reported by China since 1992, missing the 6.1% growth forecast by analysts polled by Refinitiv.
The government statistics were reported a week after the US and China agreed to have a temporary trade truce to avoid further damages to their economies. The agreement, formed by top trade negotiators for the US and China, includes halting the US tariff increases scheduled to be implemented earlier this week.
Treasury Secretary Steven Mnuchin said: “I think we have a fundamental understanding on the key issues. We’ve gone through a significant amount of paper, but there is more work to do. We will not sign an agreement unless we get and can tell the president that this is on paper.”
Meanwhile, Chinese Vice Premier Liu He claimed: “We have made substantial progress in many fields. We are happy about it. We’ll continue to make efforts.” China’s official state-owned news organization Xinhua reported that both countries “agreed to make the efforts towards a final agreement.”
According to US President Donald Trump, the agreement also involved intellectual property, financial services and agricultural purchases. While the two countries have forged this tentative trade truce, the two sides still appear to be far from concluding a comprehensive agreement.
Scott Kennedy, a China trade expert at the Center for Strategic and International Studies in Washington, argued: “I’m unsure that calling what was announced by President Trump an agreement is justified. If they couldn’t agree on a text, that must mean they’re not done. Wishing an agreement does not one make. This isn’t a skinny deal. It’s an invisible one.”