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“China’s real GDP growth remained strong in the second quarter (6.7% on a year-on-year basis) and is well on track to hit the government’s annual growth target of 6.5%,” argue National Bank Financial analysts.

Key quotes

“More importantly, Beijing is succeeding in rebalancing its economy away from trade, with consumption and government spending accounting for almost 80% of Q2 growth.”

“With growth tilting towards domestic demand, China’s vulnerability to a potential trade war is arguably diminishing. True, goods exports to the U.S. still account for a significant 19% of China’s overall merchandise exports. But as today’s Hot Charts show, given that domestic demand is growing faster than exports, goods exports to the U.S. now account for just 3.3% of China’s GDP, the lowest in at least 20 years. “