China in doldrums amidst trade war

An update on what's happening within China amidst the ongoing trade war and what's at stake ahead of tariffs set to surge in September

Preston Caldwell 12 August, 2019 | 1:49AM

China Great Wall

China’s economy remains in the doldrums. Growth bumped up slightly in the second quarter according to our broad proxy (despite officially reported growth being down); this was probably spurred by the rebound in credit growth in the first quarter. However, credit growth stalled out in the second quarter, and we believe it will continue to do so, signaling flat economic growth for the rest of this year. Meanwhile, the trade war impact looms, with the average U.S. tariff rate on China set to surge to 17.5% pending the September implementation of the recently ordered tariffs on all of the remaining untargeted imports, sending China’s currency into steep depreciation so far in August.

Growth may have recovered slightly in Q2

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Preston Caldwell

Preston Caldwell  Preston Caldwell is an equity analyst for Morningstar.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies