The world's second largest economy expanded 6.5 per cent on-year in July-September, National Bureau of Statistics figures showed, in line with an AFP survey but marking the worst performance since the start of 2009 at the height of the global financial crisis. But the slowdown has been sharper than expected, prompting Chinese leaders to reverse course and encourage banks to lend.
"Faced with an extremely complex environment overseas and the daunting task of reform and development at home", China's economic growth remained generally steady, said NBS spokesman Mao Shengyong.
The predicted third-quarter growth compared with 6.7 per cent rate in the previous quarter but would still be higher than the government's full-year target of around 6.5 per cent. "The puzzling strength in manufacturing investment despite deteriorating business confidence may also not last long amid trade uncertainties".
Zhang Gang, a strategist at Central China Securities, said investors had been awaiting a strong signal from the government but that more than mere words was needed. And Trump has said he's prepared to expand the tariffs to effectively cover all Chinese exports to the United States, which topped $500 billion a year ago.
Infrastructure investment rose 3.3 percent year-on-year for Jan-Sep, slower than 4.2 percent growth in the first eight months of the year.
Chinese regulators have already sought measures to defuse risks related to shares used as collateral for loans, while the recent declines in the country's stock market have created a good buying opportunity, Liu a member of the politburo of the ruling Communist Party of China, told the People's Daily - the party mouthpiece. One bright spot was retail sales, which grew 9.2 percent in September, beating economists' expectations. The country's politically volatile trade surplus with the United States widened to a record $34.1 billion.
He said that in the financial sector, monetary policy remains prudent, structural deleveraging has been pushed steadily, institutions' blind expansion disregarding risks has been contained and their investment decisions have become more rational.
But now some say growth could slow even more dramatically next year. It is the largest exporter of manufactured goods in the world, as well as the largest trader of commodities and leading holder of foreign reserves.
Trade accounts for a smaller share of the economy than it did a decade ago but still supports millions of jobs.
The deductible amount under each category ranges from 1,000 yuan (US$144) per month to 2,000 yuan per month, according to the draft plan released by the Chinese Ministry of Finance and the Chinese State Administration of Taxation.
"In general, the impact is limited", said a ministry spokesman, Gao Feng.