China's Economic Growth Reaches Lowest Level in Nearly Three Decades

The National Bureau of Statistics of China published new data on the country's economic situation on the first day of Bahman, indicating that economic growth has reached its lowest level in nearly three decades. According to the National Bureau of Statistics, economic growth in the world's second-largest economy was 6.7 percent last year. This figure represents a decline to the lowest level since 1990. The Bureau stated in its announcement that 'China's economy has been improving in terms of productivity and quality. However, we must remain vigilant as the domestic and international situation remains tough and complex.' China is considered one of the key elements of the global economy. According to AFP, its leaders have been trying to reduce the country's heavy reliance on exports and structural investments, which constitute the main part of this economy, and move towards increasing domestic demand. However, at the same time, global demand for Chinese products has decreased over the years, impacting the status of key manufacturing sectors. Economic growth was 6.9 percent in 2015 and fell by another two-tenths of a percent last year. Reuters reports that in recent months, the economy of this Asian power has stabilized with increased government spending and asset recovery, but the private sector remains weak. Estimates from the National Bureau of Statistics indicate that growth in fixed asset investment has also reached 8.1 percent, which is below forecasts and the lowest figure since 1999. The announcement of new statistics from China comes just hours before the inauguration of a staunch critic of Beijing's economic policies as President of the United States. Donald Trump, who will take over the U.S. government on Friday, has explicitly criticized China's economic and monetary policies and has added several other critical economists and advisors to his cabinet. Xi Jinping, the President of China, warned on January 29 in Davos, Switzerland, during the World Economic Forum, about the possibility of a 'new trade war' in the world, noting that no one will win this war. Fereydoun Khavand, an economic expert at Radio Farda, states that the presence of a high-ranking Chinese delegation at the World Economic Forum comes at a time when Trump is more of a supporter of economic nationalism than free trade based on the rules of the 'World Trade Organization,' and his representatives had a minimal presence in Davos.