Chinese economy faces crucial slowdown, unless Sino-US relations improve


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Chinese economy faces crucial slowdown, unless Sino-US relations improve

The mire surrounding the business and economic relationship between the United States and China could see the east-Asian country facing more problems in the days to come. According to a report published in the CNBC, experts have warned that the levying of duties to up to $200 billion by the US on Chinese imports could mean a drastic slowing down of the Chinese economy in the fourth quarter of 2018.

Leland Miller, data strategist was quoted by CNBC as saying, "The tariff situation has created a very bad potential problem for China [in the] fourth quarter of this year, potentially in a big way." Miller also went on to note that the counter-imposition of duties by China on American imports worth about $60 billion would also add to the escalating tension.

Continuing along, Miller pointed out that if both countries were able to resolve their stand-off during the meeting of the G-20 countries in Argentina, in November, it would really help the outlook of the international business arena.

Last week, on Friday, the data released to pinpoint the growth of the Chinese economy stated that the nation's economy had slowed down significantly in the third quarter [ended September] of the year. While the Chinese estimates had kept a growth target of about 6.6%, the country's economy grew by only 6.5%.

This was in stark contradiction to the statistics emerging about the country's exports in the same three-month quarter. Contrary to estimations, Chinese exports for 2018's third-quarter increased to about 14.5% as compared to its exports in August which came to about 9.8%.

Earlier in October, both the International Monetary Fund (IMF) and the World Bank had revised their estimates of the economic growth of China for 2019. While the IMF had brought down its target of economic growth of China to about 6.2% from its initial figure of 6.4%, the World Bank reduced its estimates for the country to about 6.2% from its former estimation of 6.3%.