Economic growth in China plummets to a 26-year low in the third quarter despite thawing trade tension between the Washington and Beijing.
According to a new report released Friday, Chinese economic growth sank to 6% year-on-year, which was a 0.2% drop from the 6.2% growth in the second quarter.
Analysts suggest the Chinese export market within the manufacturing sector has been severely impacted amid the slump as countries around the world wait to see how it will impact world markets.
According to the Associated Press, Chinese exports to the United States fell over 20% in September when compared to one year earlier.
American imports declined nearly 16%, while retail and auto sales growth had also fallen sharply.
This comes after President Trump announced the U.S. had reached a “very substantial Phase One deal” with the Chinese delegation during high-level trade talks in Washington earlier this month.
According to the president, the second phase of the trade deal will start quickly after Phase One is signed.
President Trump made those remarks from the Oval Office last week saying the deal will be very beneficial for American farmers and will be sculpted over the coming weeks.
The deal reportedly addresses various topics of contention between the U.S. and China including intellectual property and financial services.
Meanwhile, President Trump also touted the deal’s nature saying it will not need to go through the typical congressional approval process to be enacted.
The president is expected to sign Phase One, making the deal official, in the coming weeks, before moving on to Phase Two.