China’s economy in trouble because of Donald Trump’s commercial war? The data shows the “weak” state of the second economy in the world

The economy of China has registered an unequal trajectory in the first two months of the year, according to a multitude of key indicators revealed by Beijing Monday, according to a report.

Officials have looked in recent months to revive confidence in the second largest economy in the world, which has been offered by the persistent problems of the property sector and is now under increasing pressure from new commercial tensions with the United States, AFP reported.

The data from the National Bureau of Statistics (NBS) in Beijing provided some positive signs on Monday, showing retail sales of consumers’ feeling increased by four per year during January and February combined, AFP report shows.

Unemployment increases

However, the data also showed that unemployment has increased, while housing prices continued to drop in most major cities.

NBS also warned that “the internal efficient demand is weak, (and) some companies are facing difficulties in production and operation. The foundation for sustained economic recovery and growth is not strong enough.”

The rate of urban unemployment examined – China’s main metrics to measure some work – increased to 5.4 percent in February, said NBS, increasing by 0.2 percentage points compared to the previous month.

This was over the forecast of 5.1 percent Bloomberg and was the largest recorded in two years.

And, in a worrying sign for the property sector, a price index of NBS for new commercial houses has dropped from year to year in 68 out of 70 large and medium-sized cities.

China’s commercial war with the US

China statistics authorities combine many economic indicators for the first two months of the year to take into account the potential distortions caused by the annual Lunar New Year.

The industrial production from January and February has also increased by 5.9 percent from year to year, they showed the data, slowing from the increase of 6.2 percent in December.

Beijing said this month that it aims at the total growth this year by five percent – as last year and an objective considered ambitious by many economists.

Compared to a commercial war intensified under US President Donald Trump, Chinese officials are now under pressure to stimulate domestic consumption to reduce the traditional dependence of the export economy.

Since taking over the function in January, Trump has slapped the rates worth 20 percent to Chinese over the seas, which last year has reached record levels.

“The international environment will become more complex and severe in the next stage,” said NBS spokesman, Fu Linghui, for a press conference, after launching the data on Monday.

“But the general tendency of international cooperation and common winnings will not change,” said Fu.

The government launched an action plan on Sunday, hopes it can exceed the low consumer demand, including measures such as property reform and child care subsidies.

Frequent questions

Q1. What are two biggest savings in the world?
A1. Two greatest savings in the world are the US and China.

Q2. Which entity measures China’s economy?
A2. The National Office of Statistics in Beijing (NBS) measures China’s economy.