Great News: China Going From Weak To Weaker

Great struggle

The latest data suggest the world’s second-largest economy is going from weak to weaker. Consumption is fading, industrial activity is slowing, property remains stuck in a multi-year crisis and even Beijing’s once-formidable credit machine is losing momentum.

For Washington, that is unusually good news. A weaker China means a weaker strategic rival, less economic leverage for Beijing and crucially, a stronger negotiating hand for Trump when he meets Xi in September.