China is one of the fastest growing nations in the world, and everyone knows what this nation is capable of doing. But it seems the US-China trade war has pretty much affected the country’s growths rate because according to a recent report growth rate of China’s manufacturing sector has declined. Many people know that from few months China is in a trade war with the USA, and it seems like this trade war is negatively affecting the growth rate of China’s economy and manufacturing sector. According to the Chinese National Bureau of Statistics country’s Manufacturing Purchasing Manager’s Index (PMI) was just 49.4 which was too much lower as many analysts predicted. There are lots of speculations going on in global market behind such a lower growth rate of Chinese manufacturing sectors.
According to experts, the trade war is the primary reason why the manufacturing PMI of China has lowered. Due to such tariff disputes, many exporters faced a considerable amount of troubles since due to the increased tax rates many of the exporters couldn’t generate the anticipated revenue. The service sector is another significant business industry in the Chinese market which has got the excellent business growth this year despite the trade issues which has stabled China’s economy. Many business analysts are closely watching the country’s economy and studying the impact of a trade war on both the countries. However, it seems like China is getting more hit because of these trade disputes as compared to the US.
A few days ago both country’s president mutually agreed to stop the trade war for a period of 90 days, and so these countries have benefited a lot from this decision. However, there’s uncertainty about future transactions; also it will be interesting to see what China is going to do to stop the negative growth of its manufacturing sector.