The Chinese authorities have claimed that the economy of the country has grown at 6.7% from April 2018 to June 2018. Reportedly, the figures are nearly close to the rate of growth that China had exhibited q-o-q over the last two & half years. For the record, the figures place the country within its growth achieving target of nearly 6.5% for a complete year. Experts claim that the figures reported by the Chinese administration disprove weakening signs witnessed in its economy.
Data Statistics have revealed lower capital funding of the country’s infrastructure sector and a diminutive spending by Chinese ebullient customers. Sources cite that Chinese government has come under sharp criticism from its Private businesses for stamping out risky lending activities, thereby making it difficult for them to get loans for funding their business activities. Reportedly, with Chinese government enforcing stricter lending policies, the costs of borrowing money for private businesses in the country has shoot up.
With the Trump administration imposing tariffs worth USD 200 billion on China –manufactured goods by this autumn, the Chinese business growth will be further impacted as the country still depends on manufacturing & exporting toys, auto parts, clothes, and other products to the U.S. and other countries.
The country’s investment in steel and concrete sectors has witnessed a decline, thereby further plummeting the economic growth of China. With the retail sales growth slowing earlier during the second quarter of this year, experts anticipate that the Chinese economic expansion will continue to exhibit signs of weaknesses.
Recently, China has filed a WTO challenge pertaining to tariffs hikes imposed on its goods by the U.S. administration. Today, China is holding an annual meeting with EU, a strategic move likely seen to counter the U.S. tariffs through formation of anti- U.S. partnership.