According to the Chinese Minister of Industry and Information Technology China is confident that industrial growth will be stable this year.
“Looking forward to 2020, industrial development faces many difficulties and risks,” said the minister. “The pressure on stabilizing industrial growth is still big,” he continued, adding that the Chinese government will be able to ensure the smooth operation of the sector, as they plan bigger tax cuts and policies that may aid corporations.
Chinese industrial production grew unexpectedly in December, going up by 6.9 percent (year-to-year), the strongest growth in 9 months. The Chinese economy grew at its slowest pace in 26 years in 2019, going up by 6.1 percent against the previous year's 6.6 percent and advancing 1.5 percent during the last quarter.
Most of the current situation China is experiencing is due to President Donald Trump's trade war, which aims to obtain fairer trade terms between the United States and China and demands from China to comply with some conditions the US government is imposing, at the risk of imposing tariffs on Chinese exports if China doesn't comply with them.
Recently, the US and China signed the "phase 1" of a trade deal that would put an end to the feud, though still there are still some concerns regarding whether it is actually enforceable.
The government plans to continue implementing stimulus measures, such as tax and fee reductions, according to the minister. Trump promises US farmers that the trade deal will be good for them
Meanwhile, US President Donald Trump told farmers that the new trade deal with China will be beneficial for them. The deal requires that China boosts its purchase of American goods, among them agricultural produce.
“You stayed in the fight,” said Trump during a speech in front of the American Farm Bureau Federation, “You were always with me. You never even thought of giving up and we got it done,” he added.
After attacking his political adversaries, the President added that the US farmers are sticking with him and that the new agreement is a good one.
“I think it’s going to work out and I think China is going all out to prove that the agreement that we signed is a good agreement,” he added.
During his speech, Trump also mentioned the upcoming signing of a new trade deal between the US, Mexico, and Canada, which is expected to replace the NAFTA.
By 10:09 GMT the US dollar went up against the Chinese yuan by 0.07 percent, hitting the 6.8636 level.