China’s economic performance slackened during the quarter ending in June, which increased challenges for the country despite the escalating tariff wars with the United States. According to the government report on Monday, the Chinese economy was able to grow up by 6.7 percent but below the 6.8 percent in the previous quarter. Prior the battle breaks out with the US, the forecasters projected an expansion to cool after China began the tightening controls for bank lending in 2017 to curb the restraining debt. Beijing’s economic activity is predicted to decline due to the downturn in the global demand for Chinese exports and lending controls affected the construction and investment, which are considered as major drivers of growth. China retaliated to the recent declines by placing Washington deeply in debt, however, the credit level surged causing the global rating agencies to reduce the government credit rating in China. Meanwhile, China’s leaders struggle to improve growth sustained by domestic consumption and lowered confidence in investment and exports. Consumer expenditure showed slower growth than expected, making the economic expansion reliant on debt investment.
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