China’s economic growth is slowing under pressure from a simmering trade war with the U.S. and a government-led pullback of lending to reduce risky credit.
Last year, China’s economy expanded 6.6%, the slowest rate since 1990, catching the government off guard, according to the Wall Street Journal. For tech, the slowdown will have mixed results. Consumer spending, at least for pricey goods, like cellphones, will likely continue to taper, affecting companies such as JD.com and Apple.
At the same time, firms like Alibaba and Pinduoduo may fare better selling cheaper goods that Chinese will still need to buy.