Trade war effect: China GDP growth slows down to 27-year low in second quarter

Beijing, July 15(HS): China has suffered a major loss due to the United States on the economic front. Its growth has been the lowest in 27 years due to trade war of the United States and China. China’s economic growth rate (GDP) has been slowed down to 6.2 pc in the April-June quarter while growth in January-March was 6.4 pc .

NBS (National Bureau of Statistics of China ) spokesman Mao Shengong said, “The situation of the economy on the domestic and foreign front still remains serious. The global economy is softening and external instability and uncertainty are on the rise. However, these figures of GDP are consistent with the government’s target of 6.0-6.5 per cent for the whole year”.

Market analysts believe that due to trade war and lack of global demand, China’s growth rate has slowed down. Due to the slow pace of the economy, China’s President Xi Jinping is facing difficulties in fighting the US. Import duty on China is being continuously increased by the US.

According to the expert, if the trade war continues between the US-China, there is a threat of recession worldwide. Vishnu Vararatan, Asia and Oceania Economics Head of Mizuho Bank of Japan, said that China’s weak growth in April-June quarter could have the impact of the rest of Asia. Decline in import is a matter of concern as China is the main market for Asia.