China’s economic growth sank to its lowest level
in at least 26 years in the quarter ending in June,
adding to pressure on Chinese leaders as they
fight a tariff war with Washington.
The world’s second-largest economy grew 6.2%
over a year ago, down from the previous quarter’s
6.4%, government data showed this week.
Hopes for an early growth rebound faded after
President Donald Trump raised tariffs on Chinese
imports in May to turn up pressure on Beijing
over the aggressive tactics it’s using to challenge
American technological dominance. Now,
economists say the slowdown might extend into
next year.
Weaker Chinese activity carries global
repercussions. China is the world’s second-
biggest export market behind the United States.
Countries that feed raw materials to Chinese
factories — from Chilean copper to Indonesian
coal — are especially vulnerable to decelerating
growth in China.
The proportion of South African output going to
China, for instance, has shot up from 2% in the
mid-2000s to 15% now, according to a study by
the McKinsey Global Institute. Then there’s the
Democratic Republic of the Congo, which sends
45% of its exports to China, according to United
Nations data cited in the McKinsey report.
In addition, emerging market countries are
increasingly dependent on Chinese investment.
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