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Chinese industry is showing signs of weakness because of the trade war with the United States. China unveiled this Thursday a series of gloomy economic indicators for the month of October. While growth should slow further in the last quarter.
The sky is darkening over the Chinese economy, whose industrial production and retail sales, reflecting domestic consumption, slowed more than expected in October.
Another important indicator, that of investment, is deteriorating sharply and showing its weakest growth in 21 years. In this context, economists predict a further slowdown in growth for the last three months of the year and for 2020. Other clouds are accumulating on the horizon for the Chinese economy.
According to experts, real estate , one of the pillars of growth, should know a brake next year. Already, production of building materials fell in October and new home sales declined.
More generally, two external factors explain this decline in the economy. First of all, the trade dispute with the United States that has resulted in the increase of mutual customs duties. Then the weakening of global demand with a direct impact on the export.
Towards an end of the trade war?
A truce is looming, it could bring a little oxygen to Chinese companies. Beijing and Washington are negotiating a partial preliminary agreement that could be signed this month. China also said Thursday, November 14 that the lifting of customs surcharges was a prerequisite for any partial agreement with the United States on their trade war and that "in-depth talks" took place on this subject.
Last week, the Chinese Ministry of Commerce assured that Beijing had agreed with Washington for a "step-by-step" lifting of their mutual punitive tariffs.