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  • 00:00:02,085 --> 00:00:05,010 China's economic growth slowed to its lowest level

  • in nearly 30 years in the second quarter of this year.

  • Donald Trump claims that this shows his trade war

  • policies are hurting Beijing, but in reality the situation

  • is far more complicated.

  • China's gross domestic product slowed down to 6.2 per cent

  • in the second quarter, down from 6.6

  • per cent in all of last year.

  • It's not primarily the result of the trade war.

  • Of course, the tit-for-tat tariffs have hit trade.

  • China's exports to the US fell 7.8 per cent in June.

  • And US exports to China slumped 31 per cent.

  • But such numbers, although stark,

  • have little impact on the broader Chinese economy.

  • In truth, net exports contribute less than 1

  • per cent of China's total GDP.

  • China's slowdown has been created overwhelmingly

  • by domestic drivers that have little to do with US policy.

  • The main drags on Chinese dynamism

  • come from weakening investment in infrastructure,

  • slowing industrial output, and a decline in the construction

  • of new houses.

  • All of these weaknesses derive from domestic sources

  • rather than from the trade war.

  • And, in any case, China remains by far the world's most vibrant

  • economy.

  • Even growing at its lowest level in 30 years it is still

  • on track this year to add more than US$1.4tn in value.

  • That, for context, is bigger than

  • the entire Australian economy.

00:00:02,085 --> 00:00:05,010 China's economic growth slowed to its lowest level

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