If there is a set-back in trade talks, both external demand and domestic demand could be hit. If the U.S. and China reach a trade deal, China will have to step up imports form the U.S., which will reduce its trade surplus, which will reduce net exports' contribution to GDP growth.

Tang Jianwei

Categorized in : Business

As far as the future trend is concerned, it is quite obvious that it will continue to decline because the (producer price index) has apparently turned negative last month, and when PPI has turned negative, the profits of industrial enterprises will go down, profits at mid- and downstream sectors may stabilize while the upstream sector will face immense pressure.