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This Tuesday, new evidence emerged that China is feeling the pain from the aggravation of the trade war with the United States. Other evidence shows that China's economy is slowing while the US economy is thriving.
According to The national Bureau of statistics of China [http://www.stats.gov.cn/english, it is known that the index of non-production purchasing managers in June was 55.0. This figure fell to 54.0 in July. The index covers such areas as retail, real estate, aviation and software, construction activities.It should be noted that the lowest index of purchasing managers was in February. It was 51.2.At the same time, the key index falls to the 11-month low.
An analyst at the Bureau of statistics, Zhao Qinghe, believes that the bad performance in bad weather is to blame. He also said that the growing international tensions in trade led to a reduction in exports.
The PMI [ https://www.pmi.org ] conducted its research on this issue. Based on these data, it was found that China's economy is slowing while the US economy is thriving. In the second quarter, China's GDP slowed to 6.7 percent compared to the first quarter. Some economists suggest that it may reach only 5 percent after all the effects of the slowdown are taken into account.
There is also a trend in the decline of the stock index The Shanghai Composite. This index decreased by 12.6 per cent compared to the previous year.
Now consider the situation with the currency in the Chinese market. The renminbi is the Chinese currency has fallen by 8 percent in recent months. This is a huge leap for the main currency. The Chinese Central Bank is allowed to swim within the band, but the government is clearly happy to allow it to decline. This situation helps to compensate for the impact Of President Trump's impact of Chinese goods worth $ 34 billion.
And it's the right decision. In the second quarter, the annual GDP of the United States reached 4.1 percent. This is the fastest growth in four years. The S&P 500 stock index also increased by almost 14 percent. At this time the U.S. Dollar is growing rapidly against other major currencies.
The Chinese government has called for new negotiations with Washington to resolve its trade differences.
"The door of dialogue and negotiation in China remains open, but any dialogue must be based on equality, mutual respect and rules," Chinese Foreign Minister Wang Yi said at a press conference. "Any threat or pressure from the side will only be counterproductive."
Wang also said on a visit to the British Foreign Secretary Jeremy Hunt that China is interested in free trade negotiations. In addition, China gives German companies such as BASF and BMW the right to own fully owned factories in China.
All of these are part of the package of reforms that President Trump demanded from China before he will raise tariffs on Chinese exports.