China and the United States have both been taking hard hits from their now 14-month trade war. How will the two countries proceed, and, more importantly, is the world truly in jeopardy now that the world’s two largest economies are faltering?

China’s recent economic prosperity is tied to the emergence of a unique political economy, “Sino-capitalism.” This system remains deeply misunderstood in the West, yet forms an integral and highly important component of the global economy that cannot be “contained.”

Gross domestic product growth weakened to lowest since 1990s. Factory output, retail sales beat expectations in June.

Over nearly 40 years of economic reform, China has reaped extraordinary rewards from opening up to the world. Integration into the global economy – albeit

While the trade war clearly hurts China more than the US, in both absolute and relative terms, data and historical experience show that these losses are manageable for the Chinese economy.

China’s latest earnings reports show that new technologies are at the center of national growth despite its slowing economy, with new energy vehicles and 5G communications equipment sellers performing especially well. Even so, China’s economy continues to suffer from softer global demand and the ongoing trade war with the U.S.

The official manufacturing PMI fell to 50.1 in April from 50.5 in March.

After a disappointing performance in 2018, China’s economy appears to be stabilizing. In the first quarter of 2019, GDP growth, at 6.4% year-on-year, matched that of the previous quarter. But growth in industrial production exceeded expectations, expanding by 6.5% year on year (and by 8.5% in March). Even exports growth was positive, albeit weak, despite the ongoing trade war with the United States.

Recovery is still fragile as small business sentiment is mixed and global economy proving headwind.

China’s economy grew at a steady 6.4 percent pace in the first quarter.