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China’s Worsening Economy Could Lead to A Trade Deal

China’s Economy is currently passing through one of its worst phases. Considering this fact, the country could plan to repair its already worsened trading relations with the United States of America. The leaders of China are coming up with ways to stimulate the country’s Economy.

The country had released a data last Monday which was based on its industrial production. It grew up at a rate of 4.4% during August 2019, which is low as compared to growth recorded during the same time last year. Industrial Production is an important aspect to measure the Economy of China. In July, the increase was recorded at 4.8% over the previous 17 years, and it is the weakest recorded growth.

Industrial sector measures the outputs of pressing business in the country’s mining, manufacturing, and utility sectors. According to an analyst poll, Reuters had predicted a growth of 5.2%. However, the increase was worse than what was estimated.

Apart from that, the data released from the country’s National Bureau of Statistics was also not growth. During August month, the growth recorded in the retail sector had slowed to 7.5%. In July, it was recorded as 7.6%.

Ever since, the US President Mr. Donald Trump announced a trade war with China, the country which is the world’s second-largest Economy has been suffering. As the country is trying to rely less on the process of debt to fuel growth, the domestic challenges have also started growing.

All these data were released when the trade relations of China with the US have started improving – at least on a small scale. Last week, China had announced that it would be exempting pork and American soybean from the list of tariffs. Both countries have been taking a series of small steps to improve their relations before the trade talk starts.


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