China's economy growth cools further amid US tariff war

China's economy growth cools further amid US tariff war

The world's second-largest economy grew 6.2% over a year ago, down from the previous quarter's 6.4%, government data showed Monday.

White House trade adviser Peter Navarro said in an interview with CNBCon Fridaythat US Trade Representative Robert Lighthizer will travel to Beijing with Treasury Secretary Steven Mnuchin in the near future.

Net exports contributed to 20.7 per cent to output growth in the first half, down from 22.8 per cent in the first quarter.

But analysts say question marks remain over whether the two sides can reach a deal to remove tariffs introduced over the past 12 months.

In the second quarter, the country's GDP rose 6.2 percent year on year, lower than 6.4 percent in the first quarter, according to the data.

"While GDP touched a 27-year low in Q2, the on-consensus print does lessen market fears that China's economy is headed for a hard landing", said Stephen Innes at Vanguard Markets.

The country recorded a sharper decline in exports to the United States, which decreased 8.1% for the first six months of 2019. "Further tensions around (US-China) trade talks and geopolitical concerns in West Asia, the need for gold as a hedge still remains strong", he added. "As trade negotiations struggle for meaningful progress, we are probably not near the bottom for China's economy".

Apple's sales in China have tumbled.

China's retail sales of consumer goods rose 8.4 per cent year-on-year in the first half of 2019 to 19.52 trillion yuan (USD 2.85 trillion), the NBS data said. Greater online shopping activity tends to crowd out physical stores, especially for clothing and household appliances, likely limiting the positive effects of e-business on overall consumption in China.

BEIJING, July 15 (Reuters) - Growth in China's new home prices cooled in June as sales shrank for a second month, but building starts and investment quickened, providing a cushion for the slowing economy while Beijing claims some wins in reducing market froth.

Beijing has repeatedly urged local governments to take more responsibility in curbing home price growth as China's property markets have become increasingly polarised, with some cities showing signs of overheating while others are cooling rapidly.

The slowdown underlines the pressure that Chinese policy makers face as they attempt to negotiate a deal with the USA on trade, while the economy takes another step down in the long-term deceleration from the heady expansion of the mid-2000s.

However, the dollar index fell for three sessions in a row on prospects of an interest rate cut by the US Federal Reserve later this month.

"While the PBoC has already delivered stimulus this year, markets are awaiting a bazooka of (bank reserve ratio) cuts and additional measures, which will probably come if trade talks collapse", said Oanda senior market analyst Edward Moya.

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