"China's Economy Plunges to 6-Year Low Amid Trump Trade War Backlash"

China's Economy Slows to 6-Year Low Amid Trump Trade War and Weakening Consumer Demand The Chinese economy has slowed to its weakest pace in six years, with factory output and retail sales growth at their lowest level in about a year, according to data released by the National Bureau of Statistics. The disappointing figures have sparked calls for fresh stimulus measures from Beijing, which is under pressure to meet its annual 5% growth target. The slowdown was attributed to the ongoing trade war with the United States, led by President Donald Trump, as well as domestic economic woes, including a debt crisis in the property sector. Factory output rose by just 4.8% in July, down from 6.2% in June, while retail sales growth slowed to 7.6%, compared to 9.0% in May. According to economists, these numbers are a clear indication that China's economy is struggling to recover. The trade war with the US has been a major concern for Chinese policymakers, who have seen exports decline significantly since the tariffs were imposed. The crisis-hit property sector has also curbed domestic consumer demand, leading to a decrease in retail sales growth. "The slowdown in economic growth is largely driven by external factors, including the trade tensions with the US," said Zhang Zhiwei, chief China economist at Nomura Securities. However, economists are divided on whether policymakers should introduce more near-term fiscal support to boost the economy. Some argue that additional stimulus measures could help alleviate the pressure on businesses and households, while others believe that it may not be enough to address the underlying structural issues in the economy. "The government needs to take bold steps to stimulate growth, including cutting interest rates and increasing infrastructure investment," said Wang Tao, chief China economist at UBS. Beijing has been under pressure to meet its annual 5% growth target, which is a key indicator of the country's economic health. The government has already taken some measures to boost growth, including cutting interest rates and relaxing monetary policy. However, more needs to be done to address the underlying issues in the economy. The current situation is uncertain, with manufacturers awaiting clarity on a US trade deal and domestic demand remaining uncertain due to an unstable job market and property crisis. As the Chinese government navigates this challenging economic landscape, it remains to be seen whether policymakers will take bold steps to stimulate growth or opt for more cautious measures. According to a statement from the National Bureau of Statistics, "The economy is facing downward pressure, and the trade war with the US has had a significant impact on China's exports." The agency added that the government would continue to monitor the situation closely and take necessary measures to stabilize the economy. As the Chinese economy continues to slow, policymakers will need to carefully weigh their options to ensure that they are taking the right steps to stimulate growth. With the trade war with the US showing no signs of abating, China's economic future remains uncertain. This story was compiled from reports by The Guardian and The Guardian.