China's Economy Solid: Numbers point to China's economic resilience amid trade row with US

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The markets have been on edge throughout June in anticipation of heightened trade tensions between China and the United States. --But policymakers here in China say the markets are overreacting as China's economic fundamentals remain solid. Our Xia Cheng explains.

The United States officially raised tariffs on Chinese imports on Friday.

China responded immediately saying it would be forced to "fight-back" in this trade dispute.

Markets are concerned about how China's economy will fare when exports to its largest trading partner have hit a stumbling block.

On US tariffs, the American Chamber of Commerce in China issued an official statement saying that "There are no winners in a trade war. Counter-productive import tariffs, such as these, hurt not only the economies of the US and China, but those of every country around the world".

AmCham China says increased trade tensions between the world's two largest economies will not help to improve the situation for US firms operating in China. It adds that it's urging the two governments to come back to the negotiating table.

XIA CHENG BEIJING "Despite the ongoing China-US trade dispute, a raft of official data from China points to a resilient economic picture. From electricity usage to the volume of freight shipped, the numbers show only a mild impact from what was then the threat of tariffs on 50 billion US dollars worth of Chinese goods."

China's official data says the country used 10 percent more electricity in the first five months of 2018 versus a year ago. That's up 3.4 percentage points on an annual basis.

The industrial sector consumed 8 percent more electricity in the same period, the biggest jump since 2013.

China says industrial value-add for the first five months grew 7 percent on the year, up a fifth of a percentage point. Officials say that's a sign that China has truly moved up the value chain of advanced manufacturing.

And volume of freight, a key gauge for business and trade, surged 7 percent in the same period, faster than its first quarter growth.

Dong Ximiao, chief of the research institute at Hengfeng Bank, says China's recent lowering of reserve requirements for banks and an easier credit environment bodes well for the industrial sector. He expects more local government debt issuance to support infrastructure as well. He also expects firm growth in IT services and consumption.

Liu Zhiqin from Renmin University of China, spoke to CGTN.

Looking ahead, Ma Jun, a member of the PBoC policy committee says the bulk of the initial shock from escalating trade tensions between China and the US will be digested by the markets. Ma does not expect US tariffs to have a major impact on China's currency or capital markets. Xia Cheng, CGTN.