Chinese Choice

China’s economic growth slowed to 6.7% in 18Q2, from 6.8% the previous three quarters. Given government efforts to slow debt growth by reigning in risky lending, along with decelerations in investment growth, industrial output, and retail sales, 6.7%, if true, is good. However, add rising trade concerns and further slowing is likely, unless the government reverses course by boosting infrastructure spending, loosening debt controls, and demanding more commercial bank lending.