The Chinese economy is continuing to cool down, partly due to a fall in global demand and rates as a result of the trade war with the United States. Exports fell by 3.2 percent in September, which is the largest contraction since February. Imports decreased for the fifth month in a row.
Car sales also fell in September for the fifteenth month in a row. Total sales decreased by 5.2 percent in September compared to the same period a year earlier. September and October are usually referred to as the golden and silver month in the sector, since most cars are sold during those periods.
In July and August the reductions in car sales were 4.3 and 6.9 percent in succession. The Chinese car market is the largest in the world.
The relationship between the US and China seems to be thawing. Last Friday, US President Donald Trump sought rapprochement by postponing the rate increase that was scheduled for October 15 and pre-sorting it to conclude a deal to end the trade war. Existing rates, however, remain intact and the talks about a deal are far from complete according to insiders.
Despite the rapprochement between the two countries, analysts predict that China will take a long time to recover from the damage sustained by the economy. This is due to the slowing economic growth that is seen worldwide.