Is the Trade War Really Holding China Back?
Domestic policies such as reining in credit and investment-driven growth are having a much bigger impact on the economy.
Trouble at home.
Photographer: Tomohiro Ohsumi/Bloomberg
With China posting its weakest growth in a decade, officials have blamed a “challenging external environment” – polite language for the trade war. It makes for a good sound bite with an obvious villain. But in reality, responsibility for the slowdown rests squarely with Beijing’s policies and cracks in the economy.
For all the headlines and hand-wringing, the macro-level impact of U.S. tariffs on China is tiny. Growth in the country’s exports to its largest trading partner, currently at 13 percent, is on track to record its best rate in 10 years, largely thanks to U.S. strength.