China’s GDP grows at 6.4% in Q1,defies expectations slowdown

  1. China’s economy grew at a steady rate of 6.4% in the first quarter.The improvement in growth is due to (a)industrial production jumped sharply and (b)consumer demand showed signs of improvement.
  2. China has also enhanced its fiscal stimulus to shore up growth by  announcing billions of dollars in additional tax cuts and infrastructure spending.
  3. However,the economic downward pressure still persists due to (a)slowing world economy (b)increasing global uncertainty and (c)domestic structural issues.
  4. Further,the United States and China are in the final stage of completing a trade deal.The deal would end the trade war between both the countries that has been escalating since last year.
  5. The trade agreement under discussion will lead to(a)lower tariffs for American goods (b)ease restrictions on American goods such as on farms,automobile and chemical products (c)lower barriers that would allow American companies to operating from China and (d)Reduce trade gap as China will be buying more goods from US.
  6. In return for Chinese concessions,US will also remove all the trade sanctions which it had imposed on China since 2018.