Beijing/Washington: Last month, the Chinese government had announced a drop of 6.2% in the Chinese GDP growth. However, the US media claimed that the statistics were misleading, and the GDP fall was more than the published figure. In the past, China was revealed to overplayed economic growth figures, which it is repeating, as per an article published in the ‘Wall Street Journal’. The news report also stated that China’s attempt to mislead was an effort to conceal the significant blows the trade war had delivered to the Chinese economy.
The Chinese industrial sector has lost nearly 5 million jobs, since the beginning of the trade war. Also, 2 million of them are said to be directly linked to the trade war. The Chinese industrial index was consistently declining for the last three months while Chinese imports fell 5.6% in July. At the same time, the US agencies announced that China, once the largest trading partner of the United States, had dropped to the third place.
The official statistics highlight that everything is not quite well in the Chinese economy. Nevertheless, apart from the ruling Chinese government, no one has been given access to information on the actual situation of the Chinese economy. Even though some Chinese analysts and experts have claimed that the GDP growth was imbalanced, the Wall Street Journal states that the reality was not being revealed.
Over the last few years, the Chinese government has made numerous ambitious claims regarding poverty alleviation, technological progress and economic reforms. These include assertions on industrial plan ‘Made in China 2025’, complete poverty alleviation by 2021 and becoming a global leader in Artificial Intelligence (AI) by 2030.
If China accepts that the US-initiated trade war and the resulting decline thereof, a 6% decline in the Chinese GDP growth would then be revealed. It would be very inconvenient for the Chinese regime, causing their ambitions to be shattered, the report claims. Therefore, even if China had accepted a fall in economic growth, it has cleverly maintained the figures which suggest the Chinese regime could handle the situation.
The flaws and limitations of the Chinese economy had begun to be exposed even before Trump became the US President. The Wall Street Journal report warns against the repercussions of Trump’s trade war on China surfacing soon, after the exposure of the weak links in the Chinese economy.