Report: Trump’s Trade War with China Appears to Be Working | NTK Network Report: Trump’s Trade War with China Appears to Be Working

Report: Trump’s Trade War with China Appears to Be Working

China’s economy expanded at the slowest rate in 30 years thanks to Trump’s trade war with the Asian country.

By NTK Staff | 07.15.2019 @10:30am
Report: Trump’s Trade War with China Appears to Be Working

President Trump’s trade war with China is having a direct impact on the Asian giant’s economy, according to a new report from Axios on Monday.

China’s economy “expanded at the slowest rate in nearly 30 years in the 2nd quarter,” per Axios’ Courtenay Brown, and the reason behind the decline is “heightened U.S.-China trade tensions and weakening trade demand from other fragile economies.”

The Chinese government reported that its second quarter GDP was just 6.2 percent, a .2 percentage point drop from the previous quarter and “the weakest pace of growth since the government started releasing quarterly data in 1992.”

It’s an indication that the prolonged trade war with the U.S. may be hurting, per Tom Rafferty, principal economist for China at The Economist Intelligence Unit. “Businesses remain skeptical that the two countries will reach a broader trade agreement and recognise that trade tensions may escalate again,” he said in a note, according to CNBC.

China is attempting to stave off the deceleration by massively cutting taxes, investing in infrastructure, and encouraging banks to increase private sector lending, per Axios.

Predictably, the trade war is hurting China’s involvement with U.S. companies as well.

“Companies that make Crocs shoes, Yeti beer coolers, Roomba vacuums and GoPro cameras are producing goods in other countries to avoid U.S. tariffs [on imports] from China,” per the Wall Street Journal.

Countries like Vietnam, India, Taiwan, and Malaysia are all benefiting from China’s stumbles. The longer this U.S.-China battle drags on, the more manufacturing infrastructure becomes permanent in these other countries.

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