One more alarming signal has appeared in the global economy. China issued weak data on GDP. In the third quarter, the Chinese GDP rose by 3% showing the slowest pace since 1992 , while in the previous quarter a much faster increase of 6.2% was registered. Such a situation was provoked by sanctions imposed by the US.

Nevertheless, China celebrated 70 years of Communist party rule with a military parade showcasing the country’s technologies, including hypersonic weapons and modern drones. Moreover, artillery guns fired a salute. China spared no expense in boasting its military achievements despite sluggish economic growth. 

"Trade tension with the US is the key factor weighing on business sentiment and investment activities, although domestic stimulus policies are providing some buffer from the down side," said Chaoping Zhu, global market strategist for JP Morgan Asset Management.  In fact, the situation can become even worse as economists suppose that the Chinese economic indicators will nosedive in the near future. New lows are likely to be reached in the last quarter of the year. Some specialists are sure that at the next meeting the Politburo members will cut the official forecasts of the GDP growth. “Allocative inefficiencies and diminishing returns mean that unless something changes China is destined for perennially lower economic growth. This idea is reflected in our forecast, with the path into the future expected to be one that winds to and fro, with key events likely to intensify China’s prioritization of growth, regardless of the long-term cost,” Lipper Alpha Insight told their clients.