China Growth Momentum Stalls as Debt Campaign and Trade War Bite

  • Fixed-asset investment slows to record low in Jan.-July
  • Industrial output flat, retail sales slow, jobless rate up
Liang Hong, chief economist at China International Capital Corporation, talks about the economy and policies.(Source: Bloomberg)
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China’s economy hit a mid-year rough patch as efforts to curb risky lending and excessive debt collided with a deepening trade war, adding to concerns about global growth.

Fixed-asset investment in the world’s largest developing economy rose at the slowest pace in two decades in the first seven months of this year, while infrastructure spending slumped to a quarter of the pace of a year earlier. Factory output, retail sales and credit creation in July all trailed estimates.