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.

China is about to slash the employer contribution rate to the social-security fund from 18-20% (with some variation across regions) to 16%, and cut the value-added tax (VAT) rate from 16% to 13% (for most enterprises). This is on top of a previously announced reduction in the corporate income tax charged on the first CN¥3 million ($447,000) of taxable income.

China’s 2019 government work report lays out the country’s economic policies to sustain growth and avoid the “middle income trap” that Premier Le Keqiang has warned of. In taking steps next year to realize the “Chinese dream,” three battles will be tough but key: defusing financial risks, effecting targeted poverty alleviation, and achieving pollution control.

Indexes of factory activity suggest an uneven global growth outlook.