China Debt Problem Worsen With Trade War

#19986
ClemSnide
Participant

[b]Fitch: Comments on China and Trade Situation
[/b]
China’s domestic slowdown is what is driving global trade slump
US, Eurozone export growth to China falling more rapidly than total exports
Evidence from Asia suggests outlook for Chinese domestic demand will be a key driver of global trade this year

The statement from Fitch says they find China’s domestic demand slowdown as the main reason impacting trade flows in Asia rather than the direct impact of tariffs between US and China.

Fitch adds that Germany in particular has been hit hard by declining auto sales in China as a result of the slump in demand.