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KEY TAKEAWAYS
- China’s gross domestic product (GDP) grew 4.7% year-over-year in the second quarter, below expectation.
- The figure marks a sharp slowdown in the economy as a prolonged real estate slump and trade tensions continue to weigh.
- The slowdown will put pressure on Beijing to boost the economy as leader Xi Jinping and the Communist Party’s top officials gather for a twice-a-decade meeting to discuss economic reforms.
China’s gross domestic product (GDP ) rose 4.7% year-over-year in the second quarter, below expectation, as a prolonged real estate slump and trade tensions continue to weigh.
The rise was smaller than the 5.3% growth recorded in the first quarter and below the 5.0% figure expected by economists surveyed by The Wall Street Journal .
Pressure on Beijing to Boost Economy
The slowdown will put pressure on Beijing to boost the economy as President Xi Jinping and the Communist Party’s top officials gather for a twice-a-decade meeting to discuss economic reforms.
Much of China’s growth in the second quarter continued to be driven by manufacturing and Beijing’s push to sell products with cutting-edge technology, including electric vehicles (EVs). That focus, however, has led Western countries to push back, with officials including U.S. Treasury Secretary Janet Yellen accusing China of creating excess capacity.
President Joe Biden in May imposed sweeping tariffs on a large swath of Chinese imports, from steel to semiconductors and EVs, adding to levies by former President Donald Trump.