So, the trade war between the world’s two biggest economies, China and USA is beginning to have real impact.

The trade fight has led to the slow-down in growth of the Chinese economy between April and June this year.

The Chinese economy expanded by 6.7% in April-June, down from 6.8% in the first quarter and in line with a 6.7% rate tipped in an AFP survey of economists.

Despite the quarterly deceleration, the Chinese economy is still seeing strong growth, with rates still higher than the annual target of around 6.5% set by the government.

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China faced an “extremely complex environment both at home and abroad”, said Mao Shengyong, a spokesman for the national statistics bureau, noting growth remained strong.

China is facing a multi-front battle to defend its economy, fighting to cut its debt mountain while the yuan and local stock markets tumble in the face of the trade conflict.

“We should also be aware that external uncertainties are increasing, and economic restructuring is in a phase of overcoming difficulties,” Mao said.

The impact of the deepening trade conflict with the United States is yet to fully kick in, according to analysts, who added however that Beijing’s battle to rein in pollution and spiraling debt levels had crimped growth.

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