China's economy grows 6.2% in second quarter

China's economy grows 6.2% in second quarter

China's economic growth sank to its lowest level in at least 26 years in the quarter ending in June, adding to pressure on Chinese leaders as they fight a tariff war with Washington. The ongoing trade war with the U.S.is surely a factor.

The world's second-largest economy grew 6.2 percent over a year ago, down from the previous quarter's 6.4 percent, government data showed Monday.

The Chinese yuan is struggling to find direction to kick off the trading week after economic growth slowed to its lowest level in almost three decades.

Meanwhile, China's production of coke, used in steelmaking, rose 10.7% year-on-year in June to 41.69 million tonnes, with year-to-date output reaching 233.87 million tonnes, up 6.7%, the data showed.

Chinese leaders have stepped up spending and bank lending to keep growth within this year's official target range of 6 percent to 6.5 percent and avert politically risky job losses.

So why has China's economy started to slow down?


Despite cooling sales and prices, real estate investment, a major growth driver for the world's second-largest economy, quickened in June.

Farmers - particularly soybean farmers - have been hit hard by China's retaliatory tariffs since the start of the trade war past year. It comes at a time when the country's relations with the United States are at historic lows. There have been no exports of either of those two agricultural commodities to China, according to the latest Department of Agriculture data covering the period up to July 4. The net effect was a growing and increasingly productive labour force.

The Shanghai composite index rose 0.4 percent, while the Shenzhen component added more than 1 percent. Paying back the credit can take years. Given that China's financial system is mostly closed, it has little risk of an acute crisis, but the other side of the coin is that it might need even longer to clean up its bad debts.

Flags of US and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. Greater China accounted for about 18% of Apple's total revenue.

"We knew it was going to be weaker, we knew the trade war was going to have an impact".

Chinese shares were down before Monday's data release, after which they pared losses and then produced gains for the day.


"This worries us", she said.

The following are major data and facts about China's economic performance in the first half. In what analysts see as a momentary truce, Trump chose to hold off on a threat to impose new tariffs on about $300 billion worth of additional Chinese imports.

He continues to insist incorrectly that tariffs are paid by China rather than by United States companies and consumers, and again accused Beijing of devaluing its currency to make its products cheaper even with the tariffs.

China, for its part, has since said it's considering buying more US soybeans, corn and pork as a cooperative gesture but that total volumes will depend on the progress of the trade talks.

The GDP figures are within the government's target range of 6.0-6.5% for the whole year, down from the 6.6% growth China posted in 2018.

The figure fell in line with expectations as fallout with Trump's trade war outweighed the government's efforts to stimulate the Chinese economy.


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