China's latest gross domestic product data underscore that it will struggle to achieve its goal of "high-quality" economic development against the backdrop of an intensifying trade war with the United States.
As the trade dispute between the world's two largest economies shows no signs of ending, China's leadership is expected to be forced to give up structural reforms aimed at minimizing financial stability risks — a factor that would temporarily weigh on economic growth.
Some analysts have also warned that China may face "stagflation," where economic stagnation is coupled with higher inflation. That could hurt the global economy, which has been buoyed by robust growth of China's domestic demand.