China's GDP fell to 6.4% in the fourth quarter as the trade war hit consumer confidence.
Last year, China's economic growth rate fell to its lowest level in nearly 30 years because of the damage to Chinese businesses and consumers caused by the US trade war and the blow to the debt-driven corporate spending boom by the Chinese government.
Gross domestic product (GDP) grew by 6.6% in 2018, the lowest level since 1990. In 1990, after the Tiananmen Incident, China faltered in international sanctions. This proportion is lower than 6.8% in 2017.
Data released last Monday also showed that China's economy was slowing down, growing by only 6.4% in the fourth quarter, the lowest quarterly growth rate since the global financial crisis. China's economic growth has slowed for three consecutive quarters, raising concerns among investors that China may drag down the global economy.
Since July, the Chinese government has taken a series of fiscal and monetary stimulus measures to support investment and consumption, but new data show that these policies have so far failed to boost the economic slowdown.
Despite the pessimistic forecasts, financial markets across Asia responded calmly to the news, with most major stock indexes closing flat or rising. The Shanghai-Shenzhen 300 index in mainland China closed up 0.6% and the Hang Seng index in Hong Kong rose 0.4%. Tokyo's ETSE index rose 0.6% and Sydney's Standard & Poor's / ASX 200 index rose 0.2%.