Monday , January 25 2021

Last year China's economy grew slower than 1990




China's economy was waged by a trade war with the US, which could slow growth. Photo: Reuters

Growth growth at the end of the year was stricter. In the final quarter, growth was only 6.4% higher than the same period – Likewise, the last place in 2009 after the outbreak of global financial and economic crisis.

The possibility of 2019 is so fierce. According to forecasts by the World Bank and economists, China's economic growth will decline 6.5 percent or less this year. Lower levels can go down, depending on whether the trade tension with the US will be intense, or the states will succeed in reaching the consensus. The deadline for negotiations ends on March 1, when the US Already have been threatened with a new customs duty, if there is no consensus at that time.

The move to the Washington Movement's transfer process and the end of American technology stolen in China. It also calls for suspension of subsidies for Chinese companies. US The President wants this Donald Trump Reduce the high surplus created by China in the US trade; This surplus was recorded at $ 323.3 billion in 2018.

US High Customs

Last year, the Trump Administration introduced high customs duty of $ 250 billion imports of Chinese goods. Beijing has taken responsibility for $ 110 billion American products with customs duty. Without a resolution of trade dispute, 200 billion Chinese goods are exported to the U.S. Customs duties can increase from 10% to 2 to 25%.

Due to the trade war, the number of foreign trade in December decreased sharply. The export value of China's exports dropped by 4.4% to unexpectedly compared to December. Up to 7.6 percent of imports also decreased. According to the statistical office, the industrial production grew 6.2 percent to 6.2 percent last year.

Low growth record

Since 1990 there was little economic growth in China. Last year, the government's target was slightly marginally lower, which was 6.5 percent, but was up 6.8 percent in 2017. The government is "concerned" from "credible sources, who are also aware of the steps for encouraging growth. For the year 2019, the government is aiming at the economic growth rate of only 6 to 6.5 percent.

China's economic growth is not a barrier to trade warfare only. Analysts focus on the fight against leverage and other factors. This is seen in low consumption customers as well as in private, less investing companies.

Chinese Prime Minister Li Keqiang A few days ago, China's goal of maintaining growth in the "fair category" by innovation and macroeconomics policy is said.

There are additional new investment plans in infrastructure and tax relief for households and businesses. Communist leadership is particularly concerned about the labor market where wages only increase gradually. Businesses are reluctant to hire new employees, and in early February, Chinese is much more common to go on a joint holiday in New Year.

In a report released this week in Davos, Switzerland, the World Economic Forum (WWE) said that China's economic growth is the biggest economic threat this year. The slow growth of China also hampered by global economic growth.

In comparison to international, 6.6% growth is still high. China's GDP has almost tripled since 2008. However, analysts warn that China, if it wants to catch up with others as a developing country, continue its pace and open up new jobs.


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