China’s Q2 GDP growth softens

Slowing growth: Employees working on a micro motor production line at a factory in Huaibei in China’s eastern Anhui province. Chinese growth slowed slightly in the second quarter as the world’s number two economy faced a snowballing trade fight with the United States. — AFP

BEIJING: China’s economy expanded at a slower pace in the second quarter as Beijing’s efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low in a worrying sign for investment and exporters as a trade war with the United States intensified.

The world’s second largest economy grew 6.7% in the last quarter year-on-year –matching expectations – and looks set to meet the official 2018 growth target of around 6.5%, though the trade row with Washington, a slowing property market and lower shipments have sharply increased the risks to the outlook.