The trade war with China has sent US stocks on a rollercoaster ride and led to disputes about whether or not China is already discussing a trade deal. But the impact is also being felt in China. Last week there a report showed Chinese factories were slowing down in response to tariffs. Estimates of China’s annual growth are already being cut sharply.
Three weeks into a trade war that pushed import tariffs on Chinese-made goods to 145 percent, an official report on manufacturing activity signaled that in April, Chinese factories experienced the sharpest monthly slowdown in more than a year.
Zichun Huang, China economist at Capital Economics, said in a note to clients that the data “suggests that China’s economy is coming under pressure as external demand cools.” Steps the government is taking to pump money into the economy are “unlikely to fully…
