Fitch: China's domestic slowdown is what is driving global trade slump
Comments by Fitch on China and the trade situation globally
- US, Eurozone export growth to China falling more rapidly than total exports
- Evidence from Asia suggests outlook for Chinese domestic demand will be a key driver of global trade this year
The statement from Fitch says that they find China's domestic demand slowdown as the main reason impacting trade flows in Asia rather than the direct impact of tariffs between US and China.
Fitch adds that Germany in particular has been hit hard by declining auto sales in China as a result of the slump in demand. Yup, with auto tariffs from the US also looking increasingly likely, Germany is set to encounter some tough challenges this year. More so if China's car sales reflect similar sentiment to that in 2018.