US - China Trade War: Chinese Economic Growth Slumps To Its Lowest Level In Nearly Three Decades

Chinese economic growth has fallen to its lowest growth rate in 27 years as U.S. tariffs have seemingly taken their toll on Asia's largest economy.

China on Monday released second-quarter figures that its economy slowed to 6.2%. This is a decrease from the previous quarter, where the Chinese economy expanded by 6.4%

"Uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce," Tom Rafferty, principal economist for China at The Economist Intelligence Unit, told CNBA.

President Trump praised China's slow growth while crediting his own tariff policies.

Trump on Monday posted on Twitter: “China’s 2nd Quarter growth is the slowest it has been in more than 27 years. The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal....

“...with the U.S., and wishes it had not broken the original deal in the first place. In the meantime, we are receiving Billions of Dollars in Tariffs from China, with possibly much more to come. These Tariffs are paid for by China devaluing & pumping, not by the U.S. taxpayer!”

Economists, however, have pointed out that China tariffs are actually a regressive tax on American consumers.

"...Tariffs are paid by the importer – U.S. taxpayers in this instance," Trevor Greetham of Royal London Asset Management told the Guardian.

The Trump administration earlier this year raised tariffs to 25% on $200 billion worth of Chinese goods.

Major companies are now moving their production facilities away from China towards other Asian nations such as Vietnam.

During the G20 summit in June, Trump and Chinese leader Xi Jinping decided to not enact any more additional tariffs, while holding off on negotiations.

Trump claims that he is still open to a deal with China but has grown frustrated due to China's lack of willingness to buy more U.S. agricultural goods.

On Monday, Trump signed an executive order to increase the use of American-made steel and iron in U.S. federal projects. The move is aimed to counter China's booming steel industry.

Trump has often stated that China has taken advantage of the U.S. and that its currency manipulation and cheap exports are hurting the U.S. manufacturing sector. Trump claims his economic policies towards China make the trading relationship between the two countries "more fair and reciprocal."

Along with economists, major retail corporations such as Walmart have warned that tariffs would hurt the American consumer, as retailers would have to raise prices to cope with the higher cost of exports.