According to the recent reports released by the National Bureau of Statistics (NBS) which are indicating that China’s industrial sectors growth rate has been slowed down. According to the NBA, the downfall of industrial growth rate has continued, and the industrials sector’s profit has decreased by approximately 1.7 percent. The report further says that the benefit of industrial business in China has been declined by more than 680.8 billion yuan ($100.9 billion) which is a worrying thing for the whole Chinese economy. According to the experts, one of the primary reason why the majority of industries are not earning a profit is that of the deficient demand also the cost of production has increased. The trade disputes between the two big nations are making things lots of worse for China’s industrial sector and due to which the unemployment rate is also at its peak.
The Chinese officials already predicted that the country is going expect a slow economic growth rate of less than 6.6% in the next year because of the trade disputes with the US. The export sector which contributes significant revenue to the Chinese economy is also going through its worse phase. One of the most challenging things for the Chinese government is to stop the unemployment rate because most of the Chinese laborers work in the manufacturing and the industrial sectors and both of these industries are on the verge of recession. The Chinese government has already waived tons of amount of corporate taxes, and now the government is finding it hard to control the rising inflation.
From the last few days the speculations are going on regarding the trade deal with the US, and it seems like this trade deal meeting now necessary for the country’s economy.