China’s economy shows signs of slowing down
China’s export grew by only one percent in July, compared to 11 percent in June. A number of signs suggest that China’s economic growth might be waning.
Apart from diminishing trade surplus, China is also experiencing slowdowns in infrastructure and property investment. Other worrisome signs include decline in bank lending and failure of factory production to meet expectations.
“Despite the government’s effort to support investment and growth, a recovery in economic activity has so far proven elusive,” an economist, Wang Tao, said, according to Los Angeles Times.
Experts have pointed out that Europe, critical to China’s economic vibrancy, is experiencing recession which contributes to China’s slowdown. Also, the United States’ slow recovery had an impact on the Chinese economy.
Chinese leaders, however, are not out of means to stimulate the economy. Since China has become the world’s second largest economy, Chinese authorities’ economic decisions may affect the U.S. positively or negatively.
“The economic slowdowns and the political circumstances in both countries could lead to trade tensions erupting once again,” Eswar S. Prasad, an international trade expert, was quoted by the Washington Post as saying.
Nonetheless, economists have pointed out that China, with its own political and economic constraints, is unlikely to alleviate the world economy like it did after the 2008-09 crisis.