China has experienced a lot of pain after the escalating trade war with the U.S. According to the China National Bureau of statistics, the index of the non-manufacturing managers fell from 55.0 in June to 54.0 in July 2018.
This index involves things such as software, aviation, construction, real estate and retail. On the other hand, the manufacturing purchasing manager’s index has been weak since February 2018 as it was 1.2.
One of the blames for the poor performance was bad weather and rising international trade tensions which caused the exports to decline. One indication that China is experiencing the pain more than the United States is its recent calls for news discussions with Washington to solve their trade differences.
The Chinese Foreign Minister Wang Yi said in a news conference that China is open to dialogue and negotiations, but the conversation must be based on equality, rules and mutual respect.
He added that if there were any threat or pressure from one side, it would be counterproductive. He told the British Foreign Secretary Jeremy Hunt that China had interest in negotiation for a free trade deal. He also said that China has been giving German companies like BMW and BASF a right to own factories in China.
The latest indication that the Chinese economy was slowing down is the PMI data which also showed that the US economy was booming. The GDP of China slowed down to 6.7 per cent. Some economists believe that it can go as low as 5% after the full effects of a trade slow down are factored in.
Latest posts by Dorine Otinga (see all)
- Tribalism in Kenya will Hopefully Decline with Next Generation - 16 January 2019
- Kenyan Woman Recounts Memory of Surviving Post-Election Violence - 9 January 2019
- Oprah’s Tyler Perry Series Touches Kenyan Woman’s Life - 2 January 2019