China’s economic growth sinks to three-decade low

China’s economic growth fell to a three-decade low in 2018, adding to pressure on Beijing to settle a tariff war with Washington.

The world’s second-largest economy expanded by 6.6% over a year earlier, down from 2017’s 6.9%, official data showed on Monday.

Growth in the three months ending in December dipped to 6.4% — the lowest quarterly level since the 2008 global crisis — from the previous quarter’s 6.5%.

Communist leaders are trying to steer China to slower, more self-sustaining growth based on consumer spending instead of trade and investment.

Key risks are the ongoing trade tension with the US and that credit growth does not recover.

But the deceleration has been sharper than expected, prompting Beijing to step up government spending and order banks to lend more to shore up growth and avoid politically dangerous job losses.

“Growth will remain under pressure,” said Louis Kuijs of Oxford Economics in a report.

“Key risks are the ongoing trade tension with the US and that credit growth does not recover.”