China’s economy has been showing signs of strain with its escalating trade war with the United States. China is the world’s second-largest economy but its industrial output at its factories fell to its lowest level in 17 years in July.
Liu Aihua spokeswoman for the National Statistics Bureau said “Given the complicated and grave external environment and the mounting downward pressure on the economy at home, the foundation for the sustainable and healthy growth of the economy still needs to be consolidated,”
Industrial output increased by 4.8% this year in July which is down from 6.3% in June this makes it the weakest pace since 2002, retail sales which have long been a big part for the economy slowed to a 7.6% also in July down from 9.8% in June.
China’s gross domestic product (GDP) also slowed to 6.2% in the weakest pace in almost three decades. President Xi Jinping has been having a hard time fighting back against Washington which is using tariffs as leverage to force Beijing to open up its markets.