China's second quarter growth meets expectations at 6.7%

China's second quarter growth meets expectations at 6.7%

China's second quarter growth meets expectations at 6.7%

After Trump announced 25 and 15 percent import tariffs respectively on steel and aluminium, retaliatory duties on U.S. imports have been imposed by China (April 2), Mexico (June 5), Turkey (June 21), and the European Union (June 22).

The federal Liberal government introduced reciprocal duties earlier this month on some USA imports after the Trump administration slapped Canada - and other American allies - with tariffs on steel and aluminum.

Washington imposed 25 percent tariffs on $34 billion of Chinese goods in response to complaints Beijing steals or pressures companies to hand over technology.

China has filed a complaint against the U.S. at the World Trade Organisation over Donald Trump's threats to place tariffs on an additional $200bn worth of Chinese goods.

The Center for China in the World Economy hinted that China could strike back by sanctioning Apple.

Confirmation that China's economy is slowing amid an escalating trade war is a worrying omen for global growth.

Trump is threatening 10 percent tariffs on this round of goods.

The one-sentence Commerce Ministry statement gave no legal grounds for the challenge or other details.

As for the reasons behind a trade imbalance between the two countries, China blamed Americans' low savings rate and other broad economic issues.

The industrial output rose 6.7 percent in the first six months from a year earlier, but was 0.1 percentage points slower than the growth in the first quarter.

A general view of a container port in Shanghai.

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Data on Friday showed China's exports grew at a solid pace in June, in the face of the mounting tensions, but analysts warned the numbers may have been inflated by exporters pushing out shipments early to beat the scheduled tariffs. "However, we would like to see these encouraging words translated into more concrete action from China to further open up investment".

Precisely at the preparatory meeting of this Summit, China and the European Union expressed opposition and committed to join forces against the increase of protectionist measures if persisting, could unleash a recession.

The economy has already felt the pinch from a multi-year crackdown on riskier lending that has driven up corporate borrowing costs, prompting the central bank to pump out more cash by cutting reserve requirements for lenders.

Investors fear a prolonged trade battle with the U.S. could harm business confidence and investment, disrupting global supply chains and harming growth in China and the rest of the world.

"Not to start trade wars".

Seeking to cusion trade blow? This is down from 6.8 percent in the first quarter, according to official figures released on Monday by the National Bureau of Statistics.

Both China and Europe have stressed the need for trade differences to be tackled through the WTO, but the United States has said China's unfair policies are too urgent and too big for the trade body to handle. Beijing's economic power and competition from China are growing.

Likewise, China has been in the crosshairs of Trump's tariff threats for months.

The data could renew longstanding criticism from the U.S. and Europe that the world's top metal producer is selling its surplus product overseas, hurting foreign rivals.

China has said it will retaliate if Washington goes through on its tariff threats.

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