TAIPEI (Taiwan News) — China’s internal GDP report for the third quarter of 2018 has been released and reveals that growth in the country has slumped to 6.5%, a new 10-year low.
Officials have called to try and appease anxious investors. Meanwhile, Communist Party mouthpiece People’s Daily continues to gush praise on the nation’s hope for continued economic development, publishing articles claiming China’s investment in “hot land estates” assures its economic resilience.
During interviews with a number of major Chinese media outlets on Oct. 19, Vice Premier Liu He (劉鶴) tried to explain the situation regarding China’s current stock market and private enterprise development, which he believes to still be stable and exhibiting an upward trend.
However, China was saddled with debt even before the current U.S. trade war, thanks to careless and confused infrastructural investments.
The volatility of U.S. President Trump plays against the nation, as it is difficult for Beijing to predict just how far he is willing to go with tariff impositions. Moreover, the U.S. economy is currently booming which leaves Beijing even less room for maneuver in the ongoing battle.
Taiwan is carving out its own place among the chaos by stepping up and supporting American industries hit by Chinese import tariffs. State officials reported The Taiwan Agricultural Trade Goodwill delegation is planning to purchase over 3 million tons of soybeans from the U.S. in the upcoming year.
China was previously the top importer of U.S.-grown soybeans, but sales fell after clashes between Beijing and Washington began. Cementing such a key deal could greatly benefit Taiwan’s position with regards to bolstering its U.S. alliance.
China’s economy has slumped from a 6.7% growth rate in the last quarter. Although the country still may be able to meet its 2018 annual growth target of 6.7%, it will be facing struggles.