China’s economic growth in the latest quarter sank to its lowest level since the global financial crisis.
BEIJING — China’s economic growth sank to its lowest level since the global financial crisis in the latest quarter, adding to challenges for communist leaders as they fight a tariff battle with Washington.
The world’s second-largest economy expanded by 6.5 percent over a year earlier in the three months ending in September, government data showed Friday. That was down from 6.7 percent the previous quarter and the slowest rate since early 2009.
China’s economy already was cooling due to a clampdown on credit to rein in a debt boom before U. S. President Donald Trump’s tariff hikes on Chinese imports in a fight over Beijing’s technology policy. The impact of American import controls has been limited, but the downturn in other parts of the economy prompted Chinese leaders to ease controls and order banks to lend.
« China’s slowdown is a little sharper than expected, but basically fits our narrative for the economy, » said Bill Adams of PNC Financial Services Group in a report.
Beijing’s lending controls and « trade uncertainties » are « taking a bite out of economic momentum, » Adams said.
Communist leaders express confidence their $12 trillion-a-year economy can survive the conflict with U. S. President Donald Trump. But export industries have begun to suffer from American tariff hikes of up to 25 percent on Chinese goods.
Economic performance was « stable overall, » but « we must also see the number of external challenges has increased significantly, » said a government spokesman, Mao Shengyong.
« Downward pressure has increased, » Mao said at a news conference.
Also Friday, China’s central bank governor and chief financial regulator took the unusual step of issuing public statements aimed at reassuring jittery stock investors following a 30 percent decline in the country’s main market index this year.
« China’s current economic fundamentals are good, » Yi Gang, governor of the People’s Bank of China, said on the bank’s website.
