To figure out which economy, the United States or China, is affected more from the trade war, we can take a deep look at the latest industrial production figures.
In China, industrial output growth slowed to a more than 17-year low of 5 percent in May, year-on-year, with sectors such as automobiles, medical products and computer equipment experiencing the sharpest slowdowns.
The data came below both prior and expected readings of 5.4 percent, providing a vivid sign of weakening demand on China’s industrial products from as the United States intensified the trade war.
On the other hand, industrial production in the U.S. increased by 2 percent on an annual basis in May, recovering from a steady decline since September, up from 0.9 percent in April.
The Chinese central bank announced 300 billion Yuan ($43 bln) in fresh support for smaller banks by hours after the surprisingly fragile data.
U.S. President Donald Trump is preparing to launch 25 percent tariffs on virtually all Chinese imports, which would apply to a $300 billion list of consumer goods including cell phones, computers and clothing.
Trump said on Friday “it doesn’t matter” if Chinese leader Xi Jinping attends the Group of 20 summit later this month, predicting a trade deal with Beijing would occur at some point anyway.
Trump and Jinping will probably meet during this year’s G20 summit that will be held in the Japanese city of Osaka on June 28-29, noting that when they last met at last year’s G20 summit in Argentina they agreed to pause their trade war.