NEW DELHI: Sputtering growth, soaring debt and an escalating trade war with the US are increasingly weighing on China’s economy.On Friday, China’s government reported that the economy grew by 6.5% over the three months that ended in September compared with a year ago. While fast by global standards, the pace is China’s slowest since early 2009, during the depths of the global financial crisis.
China has reported growth figures over the past two years that painted a picture of an economy that is gamely chugging along, despite the country’s lingering problems and widespread doubts over the reliability of official numbers. A different narrative is emerging this year, one of a slowing economy that is forcing Beijing to make some difficult choices.Chinese shoppers are spending less and downgrading purchases, like staying home instead of going out, or drinking beer instead of cocktails. Business confidence is ebbing. Investment in splashy infra projects has dropped sharply. And China’s stock market has fallen by more than a quarter since a peak in January.