Chinese exports suffer record slump due to US-initiated trade war, admits China’s ‘National Bureau of Statistics’

Third World War

Beijing: The ruling Communist government in China as well as the Chinese media have consistently claimed that China will not succumb to the pressures of the trade war started by the United States. However in reality, the factors that are considered to be the backbone of the Chinese economy are seen to have been majorly affected as a result of the trade war. The Chinese exports sector, which has a lion’s share in the growth of the Chinese economy has started feeling the heat and the National Bureau of Statistics of China has conceded that there is a sustained decline in the Chinese exports over the last three months.

On Friday, US President Donald Trump gave clear indications of imposing taxes on Chinese imports worth $200 billion. As per the close aides of President Trump, the preparations for this have already been completed and an announcement to that effect is expected next week. Trump had also warned that the US economy is much stronger and China cannot defeat the United States in the trade war.

Against this backdrop, the information given by the National Bureau of Statistics endorses the claims and warnings issued by President Trump. As per the information given by the National Bureau of Statistics, the growth index for Chinese exports has declined for three successive months. The index known as the New Export Order Sub-index has declined by 0.4% bringing it down to 49.4% in the month of August.

The decline of New Export Order Sub-index below the 50% level is considered to be a recession in the sector, and as per the National Bureau of Statistics’ report the index has been below the 50% mark for three successive months. This is the first time in the last two years that the Chinese exports have declined for three successive months. The export sector had the maximum share in the prosperity of the Chinese economy in the last three decades and therefore a decline in exports is considered to be an omen of a new crisis.

The statistics published in the month of August showed a decline in the industrial production and investment. Whereas the growth rate of the Chinese economy for the April-June quarter as declared in July, was also lowered to 6.7%.