Business

China says misleading to suggest it needs trade deal due to slowing economy

China on Tuesday rebuffed a suggestion from U.S. President Donald Trump that Beijing needs a trade deal with the United States because its economy was slowing, saying this was "totally misleading" and that both countries wanted an agreement.

Economic growth in China cooled to 6.2% in the 2nd quarter

A spokesperson for China's foreign ministry said the country's growth is 'not bad' despite a slowing of growth. (Reuters)

China on Tuesday rebuffed a suggestion from U.S. President Donald Trump that Beijing needs a trade deal with the United States because its economy was slowing, saying this was "totally misleading" and that both countries wanted an agreement.

Trump, in a Monday tweet, seized on slowing economic growth in China as evidence that U.S. tariffs were having "a major effect" and warned that Washington could pile on more pressure.

Official data on Monday showed China's economic growth cooled to 6.2 per cent in the second quarter, the weakest annual pace in at least 27 years, amid trade pressure from the United States. In the first half, the economy grew 6.3 per cent compared with a year earlier.

Chinese Foreign Ministry spokesperson Geng Shuang said China's first-half pace was a "not bad performance" considering global economic uncertainty and slowing world growth, and in line with outside expectations.

China's stable growth is good for the world and also the U.S. economy, Geng told a daily news briefing.

"As for United States' so-called 'because China's economy is slowing so China urgently hopes to reach an agreement with the U.S. side,' this is totally misleading," he added.

"Reaching a trade and economic agreement is absolutely not a one-sided desire of China's. The U.S. side also has this desire."

'Meet each other halfway'

Many people in the United States strongly oppose the tariffs and the trade war, Geng said.

"I again call on the U.S. side to work hard with China, meet each other halfway, and on the basis of mutual respect and treatment, strive to reach a mutually beneficial, win-win agreement. This accords with the interests of both countries and is what the international community expects."

Trump and Chinese President Xi Jinping last month agreed to another truce in the year-long trade spat between the world's two largest economies.

That agreement, announced after the leaders met in Osaka, Japan, was aimed at kick-starting stalled negotiations, but no deadline has been set for the process to conclude.

Hu Xijin, editor of the widely read Chinese tabloid Global Times, published by the ruling Communist Party's official People's Daily, responded on Twitter to Trump's comment, asking if it was "noble for a president to gloat."

"6.2% is much higher than U.S. growth. Wait until U.S. growth hits 6.2% then laugh at China," Hu tweeted. "Chinese economic growth slows down because of restructuring. The credit doesn't go to the White House."

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