How much did China claim that its economy suffered from the trade war?
Group of answer choices
4.8%
4.9%
6.6%
62%
The correct answer and explanation is:
The correct answer is 4.8%.
China’s economy was significantly impacted by the trade war with the United States, particularly after tariffs were imposed on a wide range of goods. According to official reports and analyses from Chinese government sources, the trade war caused a decrease in the country’s GDP growth rate. Specifically, China claimed that the economy suffered a reduction of around 4.8% in potential GDP growth due to the trade tensions, tariffs, and related disruptions.
The trade war, which began in 2018 under the administration of President Donald Trump, involved the U.S. imposing tariffs on Chinese goods worth billions of dollars, targeting various sectors such as electronics, machinery, and agricultural products. In retaliation, China levied tariffs on U.S. goods. This led to a slowdown in global trade, decreased demand, and an increase in production costs, all of which negatively impacted the Chinese economy.
Additionally, China faced disruptions in its export-driven manufacturing sector, which is a crucial part of its economic structure. The reduction in exports, combined with the uncertainty surrounding trade negotiations, also led to diminished business confidence and lower foreign investment. China also pointed out that the global economy suffered as a result, with other nations experiencing economic consequences due to the ripple effects of the trade war.
This figure of 4.8% reflects the combined losses due to reduced exports, slower industrial production, and the broader global economic slowdown triggered by the trade conflict. While the exact figures vary across different analyses, China’s own assessment indicated this percentage as a significant cost to its economic growth.