Did Trump Just Win the China Trade War?

Slowing growth prompted Premier Li Keqiang last week to vow govt would not let the economy'fall off a cliff

Also Monday, the government announced China's 2018 economic growth fell to a three-decade low, adding to pressure on Beijing to settle a tariff war with Washington.

According to the latest figures from Beijing, China's economy grew by 6.6% last year, the lowest since 1990, the year after the Tiananmen Square massacre, the Guardian reports.

The 6.6 per cent growth comes in above the official target of around 6.5 per cent and matches a forecast by analysts polled by AFP, but is down from the 6.8 per cent chalked up in 2017, according to the National Bureau of Statistics (NBS).

Data released on Monday showed Chinese economic growth slowing to 6.4% during the fourth quarter, the lowest in nearly a decade and the third quarter in a row of slowing growth.

There have now been three consecutive quarters of slowing GDP growth in China, stoking fears of the impact on the global economy, and increasing pressure on Beijing to act to boost consumer and business sentiment and spending with measures including easing credit restrictions, cutting taxes and state spending.

But he also flagged the risk to sentiment and investment from the trade war and cautioned that negotiations between the USA and China could yet fail to resolve their differences.

Last December China's exports fell to Dollars 221.5 billion registering biggest plunge in two years amid the trade war with US.

Fixed-asset investment rose 5.9 per cent in 2018 from a year earlier, down from 7.2 per cent in 2017 and lower than Bloomberg's survey expectations of 6.0 per cent.

"US unilateralism, protectionism, and the China-US trade tensions have affected market confidence, causing private sector investment to slow in China", said Cong Yi, a professor at the Tianjin University of Finance and Economics.

Many couples who would like to have more than one child, surveys have found, say that they are not able to afford related expenses.

The drop in new births in China is set to continue.

The number of women between the ages of 20 and 39 is expected to drop by more than 39 million over the next decade, said He Yafu, a demographer and author of a book on the impact of China's population policy.

The trade dispute, and reports of job losses and tumbling sales of autos and real estate, have unnerved Chinese consumers that Beijing is counting on to drive growth. Steven Cochrane, chief Asia-Pacific economist at Moody's Analytics, told the South China Morning Post in October just how much the Chinese have to lose in an ongoing trade war. Auto sales in the world's biggest vehicle market shrank for the first time since the 1990s.

Nomura analysts said current stimulus measures will not be sufficient and the government will need to do more to prevent a rapid deterioration in the economy.

Apple assembler Foxconn let go of about 50,000 contract workers since October a year ago at the company's iPhone assembling factory at Zhengzhou City, the capital of China's Henan Province, according to a January 18 report by Japanese media Nikkei.

The country's economy also faces other challenges, including a debt pile at more than 300 percent of GDP and decreased public investment.

Related news:

Hot News

isis-killer-beheading-video-story-top Australian Open: Svitolina beats Keys to reach quarterfinals
Jan 22, 2019 - 09:56
Then he tossed it. "For me to get broken easily right after, I think I lost all the momentum that I had in the second set". Raonic swept to 3-0 and 5-1 leads in the tiebreaker but Herbert rallied to level at 5-5.

isis-killer-beheading-video-story-top Oil prices rise amid lifted market sentiment
Jan 22, 2019 - 09:34
He recalled that world oil prices fell between 2013 and 2016 (four consecutive years) and rose in 2017 and 2018 (annual averages). It was the biggest decline since February 2016, as drillers reacted to the 40 percent plunge in USA crude prices late past year .

isis-killer-beheading-video-story-top Viral video shows teenagers wearing MAGA hats mocking Native American Vietnam veteran
Jan 22, 2019 - 09:31
A teenager involved in a controversial encounter between a Native American man and a crowd of students has spoken out. He says he was trying to keep the peace between the students and another group who was shouting insults at them.

isis-killer-beheading-video-story-top Weekend winter storm sweeping from Midwest to New England
Jan 22, 2019 - 09:02
Boston could get more than 6 inches of snow, with much more to the north and ice to the south, according to local media reports. With a fresh snow pack and frozen snow, wind chills of minus 20 are likely across much of the interior Northeast.

isis-killer-beheading-video-story-top Serena Williams ousts top-ranked Simona Halep at Australian Open
Jan 22, 2019 - 06:58
Serena Williams suffered an embarrassing gaffe before her game at with Simona Halep at the Australian Open . Osaka had to stave off two break points in the third game of the second to edge ahead.

isis-killer-beheading-video-story-top Trump giving 'new life' to IS, former envoy says
Jan 22, 2019 - 05:39
Last month, the YPG invited Syrian President Bashar al-Assad's forces into the area, hoping to prevent a Turkish assault. The explosion in the northern city of Manbij Wednesday killed the four Americans and at least 10 other people.

isis-killer-beheading-video-story-top Kim summit: Second meeting by February-end
Jan 21, 2019 - 01:20
Kim has at times snubbed US envoys, including Secretary of State Mike Pompeo, evidently preferring to deal directly with Trump. He has studiously avoided criticizing Kim's human rights record, considered among the harshest in the world.

isis-killer-beheading-video-story-top After Days Of Silence, Court Says Detained Iranian-American Is Testifying
Jan 21, 2019 - 01:18
An Iranian television anchorwoman has been arrested in the US , according to Iran's English-language Press TV on Wednesday. US Federal law allows judges to order witnesses to be arrested if the government can prove that they are material witness.

isis-killer-beheading-video-story-top United should go "all out" for Pochettino, says Wayne Rooney
Jan 21, 2019 - 01:12
As the manager setting up against that you can not allow him to have the ball in those type of areas. "But if I had the opportunity to appoint someone, I'd go all out for Pochettino".

isis-killer-beheading-video-story-top Trump offers a ‘Dreamers’ deal for border-money proposal
Jan 21, 2019 - 00:40
Leaders insisted Trump needs to open the government before beginning any negotiations over border security or barrier funding. But, the decision was challenged in court and is now held up in legal proceedings. "No, Amnesty is not a part of my offer ".

isis-killer-beheading-video-story-top Steffi backs Serena to match Court's 24 Slams
Jan 21, 2019 - 00:14
No. 4 Alexander Zverev also advanced, while Alexei Popyrin upset No. 7 Dominic Thiem in straight sets on the men's side. And so while she did move out to that early lead, Williams credited "experience" with helping her turn things around.

isis-killer-beheading-video-story-top Dele Alli can play false nine like Lionel Messi, says Mauricio Pochettino
Jan 20, 2019 - 17:43
Tottenham are without Heung-mon Son as well as Kane, but Pochettino insists they have more than enough alternative attacking options.

isis-killer-beheading-video-story-top Nissan, Mitsubishi: Ghosn got improper pay
Jan 20, 2019 - 16:42
Mitsubishi became the third partner in the alliance between Nissan and Renault SA in 2016, when Nissan took a stake of 34 percent. Ghosn - once the driving force behind the Alliance of Renault, Nissan and, later, Mitsubishi sits so since the 19th century.

isis-killer-beheading-video-story-top Bouchard relishing Melbourne clash with "greatest" Serena
Jan 20, 2019 - 16:00
But that didn't stop the American tennis superstar from experimenting with her fashionable outings. I mean, I think she's, you know, the greatest ever.

isis-killer-beheading-video-story-top Mamata’s Oppn Rally: What Happened & What the People Have To Say
Jan 20, 2019 - 14:01
Claiming that the BJP's days at the Centre are numbered, she told the mammoth gathering that the "expiry date of the Modi government is here".