China's economic growth dips to slowest rate since 2009

Gladys Abbott
October 21, 2018

With winter approaching, the Asian stock market has been rattled on consumer fears of a slowdown in economic growth, with stocks plunging to an nearly four-year low this week.

He told CNBC: "China can not be growing at 6.6-6.7 percent every quarter because of the fact that they're starting to de-leverage and also for the fact that you've got a trade dispute going on with the Americans".

Each time the administration of U.S. President Donald Trump has imposed sanctions targeting China, Beijing has responded with additional tariffs on U.S. goods. But with the rest of their $12 trillion-a-year economy slowing, the communist leaderships has reversed course and ordered banks to lend.

"The Sino-US economic and trade frictions have also impacted the stock market, but frankly speaking, the psychological effect is bigger than the actual impact", said Liu.

Washington has so far slapped $250bllion (£190.4billion) of tariffs on Chinese products.

Market bubbles have sharply contracted, the quality of listed firms is improving, while valuations are at historic lows, he said.

The Shanghai Composite Index lost 2.94 percent at 2,486.42 points, while the Shenzhen Component Index closed 2.41 percent lower at 7,187.49 points.

"The economy has grown within a reasonable range in the first three quarters of the year", the statistics bureau said in a press statement.

Beijing has rejected US pressure to scale back industrial development plans Washington says are based on stealing or pressuring foreign companies to hand over technology. Growth in industrial output and consumption weakened in the quarter, while exports held up despite the country's bruising trade fight with the U.S.

More news: IPhone XR India Pre-Orders Begin, Sales Start From October 26

Beijing has cut tariffs, promised to lift curbs on foreign ownership of auto producers and taken other steps to rev up growth.

Beijing has responded to previous downturns by flooding the state-dominated economy with credit, but that has swelled debt.

Regulators have ordered banks to step up lending, especially to entrepreneurs who create most of China's new jobs and wealth.

The central bank "actively encourages" some local governments' policies to support the liquidity of businesses based there, and is promoting plans to support equity and bond financing of private enterprises, he said.

Chinese Vice Premier Liu He said Friday that the country will strive to maintain steady economic growth and properly ward off financial risks with the macro leverage ratio kept relatively stable. China's Minister for Commerce, Zhong Shan, in his recent statement said, 'There is a view in the USA that so long as the U.S. keeps increasing tariffs, China will back down.

During the same period, growth in retail sales of consumer goods climbed 9.3 percent, down from 9.4 percent in the first half of 2018.

China and the United States have failed to resolve the trade row through dialogue. But makers of less price-sensitive exports such as factory equipment and medical technology are confident they can keep their market share.

Global investors have been swiped by a series of problems in recent months including rising US interest rates, geopolitical tensions and the China-US trade conflict, and they are running to the hills as they seek out safe havens.

Other reports by LeisureTravelAid

Discuss This Article

FOLLOW OUR NEWSPAPER