China's economic growth remained stable in the last quarter of 2018 despite a tariff war with Washington as Beijing's efforts began to make progress in the face of the economic slowdown. The Chinese government announced on Wednesday that the world's second-largest economy saw a growth of 6.4 percent over last year in the three months before March. This was in line with the previous quarter's weakest growth since 2009.
Reviving China's economic growth and import demand could help boost weak global economic activity. China is the largest exporter to its Asian neighbors and the most important market for cars, mobile phones and other consumer goods, food and industrial technology. Communist leaders stepped up government spending last year and asked banks to lend more after weak economic activity.
The government statistics agency reported that consumer spending, factory activity and investment all accelerated in March compared to the previous month. The economy showed "growing positive factors," the agency said in a statement.
Economists expect China's economic growth to recover this year. The conflict between the world's two largest economies has disrupted trade in goods from soybean to medical equipment, affecting exporters on both sides and shaking financial markets. The two governments say settlement talks are making progress, but sanctions on billions of dollars of each other's goods are still in place.
China's top economic leader, Li Keqiang, cut the annual growth target for 2019 from 6.5 to 6 percent in March after last year's low rate fell to a three-decade low of 6.6 percent. Li warned of "increasing difficulties" in the world economy and said the ruling Communist Party planned to increase deficit spending this year to support growth.
The stimulus measures temporarily hampered official plans to reduce debt dependence and investment to support growth.
Also in March, exports rebounded from the previous month's contraction, rising 14.2% over the previous year. Exports, however, have risen by only 1.4% so far this year, while imports have shrunk by 4.8% in reference to weak domestic demand. Car sales fell 6.9% in March compared to last year, falling for the ninth month. But this was better than the 17.5% contraction in January and February.