The Chinese economy slowed noticeably in July, according to official statistics released on Friday, highlighting a complex set of challenges facing China amid growing global tensions over trade.
The government attributed the slowdown partly to the trade war with the United States, though China’s economy is still suffering the overhang of a four-year-long crash in real estate values. What’s more, officials recently have taken deliberate steps to slow its factories as many countries have begun imposing tariffs on China’s massive and still rising exports.
In July, industrial production, retail sales and investment faltered and fell short of economists’ expectations. Unemployment ticked up as millions of young people graduated from college and looked for work. Lackluster factory output was a particular surprise as the Chinese government had announced last week that exports were still growing strongly, with little effect so far from President Trump’s tariffs.
Fu Linghui, the spokesman and chief economist of China’s National Bureau of Statistics, speaking at a news conference, cited the tariffs and other factors.
“The international environment in July was complex and severe, with the continued impact of trade protectionism and unilateralism,” he said. He also cited a “short-term impact” from extreme weather, including flooding and heat waves.
Some of the economy’s deceleration appeared to be the expected result of government policies. Many companies have been engaging in frenetic price-cutting as they try to clear excess inventory. The Chinese government has responded by beginning to discourage further investment in industrial categories where many factories run at half or less of capacity, like those making cars or solar panels.
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The post China’s Economy Slows Broadly Even as Exports Keep Rising appeared first on New York Times.
