China sent a scathing message to critics of its economy during the recent World Economic Forum held in Davos, Switzerland. In a speech during one of the conferences, Chinese Vice President Wang Qishan said that China's growth remains positive. A notion that contradicts many opinions when it comes to global trade.
In a statement, Mr. Wang said, "There will be a lot of uncertainties in 2019, but something that is certain is that China's growth will continue and it will be sustainable."
Based on a handful of economic reports and data, it China's economy grew by 6.6 percent in 2018. While this growth remains positive, it is the country's slowest pace in an economic boom which lasted close to three decades.
Some economic analysts have noted that this drop in pace might signal that China's economy has finally hit its peak and is only reasonable for it to slightly slow down. This point, however, is contested by China's commitment to long term growth. As Vice President Wang Qishan noted, China's growth continues to remain positive and while the country may experience a little slump what is more important is its future and long term goals.
In order to stabilize the country's economy, the Chinese government has resorted to adopting various regulations in order to rein in debts. While some analysts have noted that this is a good decision for China in the long term, some disagree to and said that it is hurting the country's economic activity.
While some analysts pointed China's new regulations as one of the primary reason for its recent drop in economic pace, what many economists agree is the fact that the country is currently embroiled in a bitter trade war against the United States. A trade war that has seen close to $50 billion worth of tariffs being levied on each other's goods. Following the United States' decision to slap tariff against Chinese goods, China's economic momentum has dropped quite a bit as investors and importers become wary of its negative effects on their businesses.
As for China's view of its economy, the government is stern on its message of positivity. While critics may say that the country's growth rate is at its lowest in decades, China remains positive stating that speed does not matter. What matters the most is the quality and efficiency of the country's development.
As part of the trade truce, Chinese and American representatives are slated to meet within the next few weeks in order to discuss terms to end the trade war between the two countries.
