China’s economy is in trouble due to Donald Trump’s trade war? Data shows the world’s second largest economic situation

According to a report, Beijing’s series of key indicators in the year show that China’s economy has drawn an unbalanced trajectory in the first two months of the year.

Officials have recovered confidence in the world’s second-largest economy in recent months, a economy plagued by ongoing real estate sector plight and is now under pressure from fresh trade tensions with the United States, AFP reported.

Data from Beijing’s National Bureau of Statistics (NBS) on Monday provided some positive signs, showing retail sales, a key measure of consumer sentiment, rose 4% year-on-year in January and February, AFP report showed.

Unemployment is rising

However, the data also suggests that housing prices continue to fall in most major cities, while housing prices continue to fall.

The NBS also warned: “The domestic effective demand is weak and some companies are facing difficulties in production and operations. The foundation for sustained economic recovery and growth is not strong enough.”
The surveyed urban unemployment rate – a major indicator of China, used to measure how much jobs are there – rose to 5.4% in February, up 0.2 percentage points from the previous month, the NBS said.
That surpassed Bloomberg’s 5.1% forecast, the highest in two years.
And, among the worrying signs of the real estate sector, the NBS price index for 68 new commercial homes in 70 large and medium-sized cities in February fell year-on-year.

China and the United States trade war

China’s Bureau of Statistics combined a number of economic indicators in the first two months of this year to illustrate the potential distortion caused by the annual lunar New Year holiday.

Data showed industrial production rose 5.9% year-on-year in January and February, slowing from 6.2% in December.

Beijing said this month it aims to grow at 5% this year, the same as last year, while many economists consider ambitious.

Faced with the intensification of the trade war under U.S. President Donald Trump, Chinese officials are now facing pressure to increase domestic consumption, requiring them to reduce their economy’s traditional dependence on exports.

Trump’s tariffs on Chinese goods overseas have reached a rate of 20% since taking office in January, reaching record levels last year.

“The international environment will become more complex and serious in the next phase,” NBS spokesman Fu Linghui told a press conference after the data was released on Monday.

“But the overall trend of international cooperation and common victory will not change,” Fu said.

The government released an action plan on Sunday hopes to overcome low consumer demand, including measures such as property reform and childcare subsidies.

FAQ

Q1. Are there two largest economies in the world?
A1. The two largest economies in the world are the United States and China.

Q2. Which entity is measuring China’s economy?
A2. Beijing’s National Bureau of Statistics (NBS) is measuring China’s economy.