China announced its lowest GDP growth numbers since 1992 on Monday, as the ongoing trade war between the world’s two largest economies continues to take its toll.
The country’s GDP grew 6.2% for the quarter ending in June, down from 6.4% the previous quarter, according to government figures cited by CNN.
The U.S. and China are still far from resolving their punishing trade war. Although U.S. President Donald Trump and China’s leader Xi Jinping agreed on a truce during the G20 Summit in late June, they are no closer to agreeing on key issues like IP infringement, and some experts believe the trade war is far from over.
“Uncertainty caused by the U.S.-China trade war was an important factor and we think this will persist,” Tom Rafferty, principal economist, China at the Economist Intelligence Unit, told CNN. “Businesses remain skeptical that the two countries will reach a broader trade agreement and recognize that trade tensions may escalate again.”
Just weeks after the agreement, Trump accused China of not buying enough agricultural products from the U.S.
Its economy is in a “grave situation,” China’s National Bureau of Statistics said in a statement, according to CNN. “Global growth has slowed and external uncertainties are on the rise.”
The statement predicted that the economy would continue to face “downward pressure” for the remainder of the year, according to CNN.
Washington has imposed 25% tariffs on $250 billion in Chinese imports. Beijing’s retaliatory tariffs target $110 billion of U.S. goods.
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