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China's deleveraging weighs on growth as trade war unfolds

Quarterly GDP drops to 6.7% with investment and consumption suffering

A subway tunnel under construction in Changsha, China. Investment in such public works has flagged amid a crackdown on shady financing, weighing on overall economic growth.   © Reuters

BEIJING -- China's slowdown in quarterly growth reflects its crackdown on bad debt but comes at an inopportune time for policymakers as the just-launched trade war with the U.S. casts a pall over the second half.

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