The continued trade war with the U.S. is slowly chipping away at China’s economic growth.
China’s growth saw its lowest level in 26 years, slipping to 6 percent in the latest quarter, with the previous being 6.2 percent.
The 15-month trade war going on between the China and the U.S., with Trump placing tariffs on Chinese goods, and continuous failed attempts at making a trade deal, seems to be weakening the Chinese economy.
Exports to the U.S. just in September are 22 percent lower than last year’s, with imports as well going down another 15.7 percent. Retail sales and auto sales have also taken quite massive hits – falling 8.2 percent over the previous year, and 11.7 percent respectively.
The economic growth forecast for America has cut the prediction down to 3 percent from 3.2 percent, due to the tariff war and more uncertainty that the trade war brings about.
The U.S. also saw its lowest consumer spending rate in seven months in September, however, with economic optimism rising 3 percent early this month, and the unemployment rate being the lowest in 50 years, the nation’s economy is now much more stable than it was before Trump’s election.
The problems, however, with China’s economic growth sinking and the continued trade war, might become not only a national problem, but could potentially leave its mark on the global economy as well.