‘Trade war with US could slice 1pc of China’s GDP’
BEIJING, May 19: A high ranking Chinese official has said that the ongoing trade war with the US could slash China's GDP by one per cent, in a first such admission by Beijing that the tariff war with Washington is biting the world's second largest economy.
The Chinese economy which is on a downward trend slowed down to 6.8 per cent last year and the government this year officially slashed the GDP growth to be between 6.5 and 6 per cent.
US President Donald Trump, who kicked off the trade war last year, is demanding China to reduce the massive trade deficit which has climbed to over $539 billion last year. He is also insisting on Beijing for verifiable measures for protection of intellectual property rights (IPR), technology transfer and more access to American goods to Chinese markets.
The US-China trade war could slash one per centage point off Beijing's economic growth this year, Wang Yang, one of the seven members of the elite Politburo Standing Committee of the Communist Party of China (CPC) which virtually rules the country, was quoted as saying by the Hong Kong-based South China Morning Post.
Speaking to a group of Taiwanese business people whose companies are based in mainland China on Thursday, Wang said the government had assessed the impact of the near year-long dispute and estimated that in the worst-case scenario gross domestic product growth would be one per centage point lower than expected.
While Wang did not outline any plans for dealing with the fallout from the trade war, he is the first official from the top policymaking body to speak so candidly about its possible impact on headline targets, the report said.
A member of the audience at the event in Beijing said despite the official's frank assessment, he did not seem too worried about the long-term effects of China's spat with the US. -PTI