China Sees Lowest Economy Slump in 27 Years 📉
After trade war with US, China’s 2nd quarter growth comes in at 6.2%
The Chinese economy usually sees between 8% and 12% growth each quarter. Due to the altercations between China and the US, growth decreased to 6.2% in the 2nd quarter, marking the lowest growth rate seen in China since 1992. Trump tweeted that the problems in China are no doubt due to the tariffs the US recently placed on the nation, and that this stagnation represents victory for the US.
What does the slump mean for China moving forward?
The Global Times, a news source based in China, claims that “much potential remains for China’s economy.” The government will not be adopting strong stimulus policies and will instead ride out the stagnation. However, President Xi Jinping has reopened negotiations with Trump concerning the US-China trade war, so it’s clear that actions are being taken toward the recovery of the Chinese economy before the decline gets out of hand.
Fox Business: China's economy growth cools further amid US tariff war
The right claims that China’s slowed growth comes as a result of the trade war. Articles highlight the decline and the pressure it will put on Chinese leaders moving forward. Sources speculate that the decline may continue into next year, and that the opened renegotiations will result in more wins for the US.
Financial Times: China’s slowdown masks its scale and resilience
The left focuses on China and how China can recover from the slowdown. When articles do mention Trump’s trade war, it’s phrased as a negative, using words like “as the trade war drags on.” Despite the setback, the left generally believes that China will land on its feet and recover. Some outlets suggest that trade is no longer the leading source of the Chinese economy, so the trade war will have less effect in the long run.
Where’s the common ground?
Both sides recognize that China’s economic stagnation is worrying, and that it is likely due at least in part to the trade war. While the two sides differ in their framing of the data, both report the same numbers and explain the same facts. The Chinese economy has not crashed, but is facing difficulty. What happens next relies on the future of the trade war and the actions of the Chinese government.
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