Ongoing trade war with US could slash 1 % of China’s GDP
18, May 2019
Prelims level : Mains level :
- A high ranking Chinese official has said that the ongoing trade war with the US could slash China’s GDP by one per cent.
- Wang Yang, one of the seven members of the elite Politburo Standing Committee of the Communist Party of China (CPC).
- Wang is the first official from the top policymaking body to speak so candidly about the possible impact of the trade war.
- 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 six 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 USD 539 billion last year